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A New Social ETF With Seeking Alpha Data Used For Index Selections


I examine the recently launched Sprott BUZZ Social Media Insights ETF.

The fund is unique as it builds its holdings from social sentiment.

The ETF is brand new, so caution should be exercised.

In this article, I will be examining the new and intriguing Sprott BUZZ Social Media Insights ETF (NYSEARCA:BUZ). This ETF is unique because it builds its list of holdings from various social media sources, including data from Seeking Alpha.

ETF Statistics/Important Information

- Expense ratio: 0.75%

- BUZ just launched, so volume and assets are still very low

BUZ Index

The chart below from Sprott shows that the ETF takes the 100 most mentioned stocks from the list of social media sources (Seeking Alpha logo highlighted) and identifies those with the highest bullish sentiment. Some of the highest profile social media sources the index provider uses are Twitter (NYSE:TWTR), Facebook (NASDAQ:FB), and of course Seeking Alpha.

In addition, BUZ adds in a filter to identify social media users whose posts are likely to affect the collective opinion. I like to think of this criteria like the ETFs that follow the holdings of popular hedge funds...