AMC and GameStop May Soon Feature in a Meme Stock ETF
Even as meme stocks GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) trade near one-month highs, they may soon be included in a new meme stock-exchange-traded fund (ETF), the Roundhill Meme ETF. Is the fund worth considering? Let's take a closer look.
ETFs let individuals invest in a bundle of stocks by trading shares in the ETF instead, providing easy diversification. Most ETFs center on stocks with a traditional investing theme. Examples include the S&P 500 or a specific market sector, such as information technology. This new meme ETF, however, will attempt to create an index of stocks that are favorites among retail investors in social media.
Roundhill Investments, the firm filing with the U.S. Securities and Exchange Commission (SEC) to launch the ETF, already operates six others. The company says its ETFs provide "targeted, pure-play exposure to the investment themes of the future." Some examples include the Roundhill Bitkraft Esports & Digital Entertainment ETF (NYSEMKT: NERD), which focuses on video-gaming "esports" and the teams playing them; the Roundhill Sports Betting & iGaming ETF (NYSEMKT: BETZ), which includes companies that provide physical and online betting services; and the Roundhill Streaming Services and Technology ETF (NYSEMKT: SUBZ), featuring companies with streaming services.
Source Fool.com
