MEME - MEME ETF: A Mistake That Will Likely End Badly
- Roundhill Investments recently launched the MEME ETF, comprised of 25 securities that have a high "meme score" and high short interest.
- The pitch is straightforward: Although many of these stocks will fail, investors only need a few home runs to make them profitable.
- Unfortunately, MEME's passive indexing approach and 14-day minimum holding period mean losses are the most likely outcome.
- I will show that increased social media activity is a poor predictor of future returns, and hedge funds now have access to better data to protect against short squeezes.
- My recommendation is to watch with interest but not take a position in MEME. Speculative investing has a place in portfolios, but you're better off doing it with individual stocks on your own.
For further details see:
MEME ETF: A Mistake That Will Likely End Badly