BUZ: First Social Media Buzz ETF launched BY ALPS

ALPS Advisors Inc., begun trading the Sprott BUZZ Social Media Insights ETF (NYSE Arca: BUZ) on Thuesday, April 19, 2016.

 

FUND INFORMATION:

Symbol: BUZ Exchange: NYSE ARCA
Name: Sprott BUZZ Social Media Insights ETF Net Expense Ratio: 0.75%

 

FUND OBJECTIVE:
The Sprott BUZZ Social Media Insights ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the BUZZ Social Media Insights Index.

REFERENCE INDEX:
The BUZZ Social Media Insights Index utilizes a rules-based quantitative methodology developed by BUZZ Indexes Inc. (Index Provider), which is  designed to identify the U.S. common stocks with the most “positive insights” collected from social media networks. Such positive insights are a measure of the degree of positive company sentiment as well as the breadth of active discussion about each company by participants on social media networks.

The Underlying Index is compiled by the Index Provider. In order to be eligible for inclusion in the Underlying Index, a company’s stock must be traded on one or more major U.S. exchanges, have a minimum market capitalization of at least $5 billion, and have a 3 month minimum average daily trading volume of $1 million. The Index Provider identifies the top 100 most “mentioned” common stocks that meet the above criteria. The methodology incorporates a review of data from the preceding 4 calendar quarters. Mentions are defined as relevant news articles, blog posts, and social media data or posts which are classified as relevant for analysis. After identifying the top 100 most mentioned companies, the Index Provider applies additional filters in order to sort the list based on the level of bullish perception, brand value perceptions, and breadth of discussion with respect to each of the top 100 most mentioned companies over the past 30 days. In calculating a security’s positive or negative “insight score”, the Index Provider’s methodology also takes into account the historic reliability and accuracy of the users that mention the security. Based on the results of the filtering processes, the Index Provider selects the 25 companies with the highest positive insight scores and weights the 25 constituent common stocks of the Underlying Index based on a proprietary scoring model. The Underlying Index is reconstituted and rebalanced after the close of the third Thursday of each month. The Underlying Index employs a modified proprietary weighting methodology such that each constituent comprises no more than 15% of the weight of the Underlying Index as of each rebalance, provided that, as of each rebalance, no more than 45% of the weight of the Underlying Index may consist of constituents comprising greater
than 5% of the weight of the Underlying Index.

 

 

Useful Links:
BUZ Home Page

 

 

 

ETFtrack comment:
Here is a comment from Michael Akins, Senior Vice President, Head of ETF Strategy for ALPS Advisors:
“The Sprott BUZZ Social Media Insights ETF brings together a powerful combination of social media and big data analytics. Not only does the BUZZ Index measure investor sentiment, it also identifies key influencers and scores which social media members have historically been the most successful in their forecasting accuracy. We believe that investors will quickly recognize the value in this new ETF and its potential to optimize portfolio returns.”

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