The VanEck Vectors Social Sentiment ETF (BUZZ) debuted on Thursday and it was an instant hit!
Here's my take on BUZZ's first day performance along with its impressive numbers.
Hey, guys. We just wrapped up the first trading day for the VanEck Vectors Social Sentiment ETF, otherwise known as the BUZZ ETF. If you're not familiar with this launch, this is the fund that Dave Portnoy has been getting behind. He's involved in the underlying index for the ETF and is also lending some of his marketing muscle and his social media presence to really promote this fund ahead of its launch today.
And I just wanted to run through some of the numbers from the first day because it's been incredibly impressive. Portnoy's done his job and he's brought a lot of attention to this fund and a lot of investors in this fund. So I'm going to throw a chart up on the screen just to give you an idea of how the fund did today.
As far as performance, it was down about 3.6% on the day, but that is not the big story here. The big story here is how actively the fund was traded. It traded a total of 18 million shares on the day, which in a typical day would put it probably somewhere in the top 20 to top 40 most actively traded ETFs, so business was huge today. It traded four and a half million shares just in the first 5 minutes alone, so you can see that there was a lot of pent-up demand for this product and a lot of people were ready to buy it the minute they could get their hands on it.
As far as a dollar volume basis, that translates to about 430 million dollars in total, which is probably the biggest launch ever seen outside of companies that have seeded a new ETF with their own in-house assets, so the BUZZ ETF really was just straight to retail and it just built straight from the ground. So $430 million is almost unheard of for a new fund lunch like this.
As far as what kind of assets were going to see stick around in this ETF, we probably won't know that for another day or so. I saw earlier estimates before the launch of expecting maybe $50-80 million dollars in assets after its first couple days. I saw another one earlier today where somebody guessed that maybe it would be up to $300 million. We really won't know for sure, but with the $430 million trading volume I imagine a lot of that is going to be buying activity, so we're going to see a lot of that stick. It is probably going to be closer to $300 million than it is to $50 or $80. I don't know the exact number, but it's going to be huge. It was a big day for Dave Portnoy and he clearly did his job of getting this fund out to the masses and bringing a lot of attention to it.
I don't know how much of this is going to continue over the next coming days. Obviously, the launch is the big day and gets a lot of attention. I imagine business is probably going to slow down a little bit going forward, but obviously this is the biggest fund launch of the year so far and will probably continue to be the biggest fund lunch maybe until we hopefully eventually get a bitcoin ETF, but until then this is clearly a huge debut for the BUZZ ETF and Dave Portnoy.
We'll keep an eye on this one going forward. It's got a lot of interest and I'll keep watching it here at ETF Focus on Thestreet.com. We'll talk to you again soon.