QQQ - VanEck Social Sentiment ETF: Don't Buy Into The BUZZ
- BUZZ tracks an Index of 75 large-cap growth stocks with positive online sentiment. Fees are 0.75% annually, and the ETF has $118 million in assets under management.
- There are no quality screens except for a minimum $5 billion market capitalization. Except for 2020 when unprofitable growth stocks were favored, even backtested data fails to support the strategy.
- BUZZ, like several other thematic ETFs, was created for the wrong reasons. The AI its Index uses to select constituents has delivered a 41% loss since April 2021.
- Key reasons for this include sky-high valuations and low EBITDA margins. This article provides its fundamentals alongside the Invesco QQQ ETF to highlight its weakness.
- BUZZ is an ETF you should avoid at all costs, and it gets one of my rare "strong sell" recommendations today.
For further details see:
VanEck Social Sentiment ETF: Don't Buy Into The BUZZ