{"id":37209,"date":"2023-11-26T10:02:26","date_gmt":"2023-11-26T10:02:26","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/a-meme-etf-has-beaten-the-market-lately-amc-and-gamestop-arent-the-reason\/"},"modified":"2023-11-26T10:02:27","modified_gmt":"2023-11-26T10:02:27","slug":"a-meme-etf-has-beaten-the-market-lately-amc-and-gamestop-arent-the-reason","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=37209","title":{"rendered":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren’t the Reason."},"content":{"rendered":"
\n
\n

<\/p>\n

\n
<\/div>
\n

Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d<\/h4>\n


\n David Paul Morris\/Bloomberg
\n <\/span>
\n <\/figcaption><\/figure>\n<\/p><\/div>\n

A meme-themed exchange-traded fund has been rising, but it has nothing to do with
\n GameStop
\n or
\n AMC Entertainment
\n \u2014two of the classic \u201cmeme stocks\u201d in its portfolio. <\/p>\n

The
\n Roundhill MEME ETF
\n (ticker: MEME) is up 12.3% this month, outpacing the 7.5% gain in the S&P 500 and 9.2% return for the Nasdaq Composite Index. But a look under the hood reveals that the ETF may not be what you think, including stocks that stretch the meme concept like
\n Tesla
\n (TSLA),
\n Palantir Technologies
\n (PLTR), and
\n Palo Alto Networks
\n (PANW).<\/p>\n

\n

\n AMC
\n (AMC) and
\n GameStop
\n (GME), two of the classic meme stocks, which are in the portfolio, have both declined this month. <\/p>\n

Enthusiasm\u00a0<\/strong>for tech, combined with a return of the market\u2019s \u201canimal spirits,\u201d rather than as return of meme-mania, may be driving the ETF\u2019s latest returns, says Jessica Rabe, co-founder of DataTrek Research.<\/p>\n

\u201cThe whole notion of a meme stock is difficult to define precisely. They came and went with the speculative tech bubble in 2021,\u201d she says.<\/p>\n

While the ETF is up 29.6% this year, it\u2019s trailing the tech-heavy Nasdaq Composite, up 36.3%.<\/p>\n

The term \u201cmeme stock\u201d emerged in early 2021, when beaten up names like GameStop and AMC surged as retail traders weaponized social-media platforms like Reddit and X, formerly called Twitter, aiming to drive up prices in heavily-shorted stocks. Short sellers were forced to quickly cover their bets, and traders pocketed big gains with well-timed buys and sells.<\/p>\n

Roundhill, which sponsors the fund, describes it as the \u201cfirst and only ETF explicitly designed to track the performance of meme stocks.\u2019 \u201d The fund tracks an index of 25-equally weighted stocks that exhibit a mix of \u201celevated social media activity and high short interest.\u201d Roundhill says it rebalances the portfolio every two weeks to keep it equal weight.<\/p>\n

Some of the ETF\u2019s holdings aren\u2019t particularly meme-y. Holdings as of November 21 included
\n Palo Alto Networks,<\/span>
\n Tesla, Palantir, and
\n Datadog
\n (DDOG). All have solid fundamentals and have been surging amid a rally in tech. AMC, by contrast, is off more than 20% and GameStop is down 4% this month.<\/p>\n

As of last Tuesday, only four of the 25 holdings in the ETF were among the top 18 most-mentioned tickers on Wallstreetbets, the Reddit forum that drove meme frenzy nearly three years ago. Those stocks were Tesla, Palantir, AMC, and
\n Rivian Automotive
\n (RIVN).<\/p>\n

The phenomenon now feels like little more than a marketing term. <\/p>\n

The
\n Roundhill MEME ETF
\n launched in December 2021 as the meme-frenzy was coming off its peak. Since inception, the ETF is down 54.6% against a 7.2% drop in the Nasdaq Composite Index. It\u2019s also failed to catch on with investors, attracting just $2.7 million in assets.<\/p>\n

Roundhill did not immediately respond to a request for comment. <\/p>\n

Part of the reason the meme idea may be dying is that retail trading levels are down sharply from 2021 when traders were flush with stimulus cash and had plenty of time on their hands during the pandemic.
\n Robinhood Markets
\n (HOOD), one of the most popular trading platforms for meme traders, saw a 36% drop in equity trading volume over the two-year period ending in October 2023, for instance. <\/p>\n

GameStop and AMC have lost luster as meme trades. GameStop shares are down 33.4% on the year. AMC\u2019s fate has been worse with shares down 80.5% this year, including a 30% drop this month after announcing plans to sell up to $350 million of stock to pay off debts. <\/p>\n

One bright spot for the meme ETF has been crypto. The fund holds
\n Coinbase Global
\n (COIN), along with Bitcoin mining stocks
\n Marathon Digital Holdings
\n (MARA), and
\n Riot Platforms
\n (RIOT). All three stocks have gained more than 190% this year as Bitcoin rallied. <\/p>\n

It\u2019s a similar story for payments company
\n Block
\n (SQ), another ETF holding, with shares up 34% over the past month, but that\u2019s larger due to a solid earnings report earlier this month, rather than trading fever.<\/p>\n

Animal spirits may be back in the market, but it may take more than that to bring meme stocks back to life. <\/p>\n

Write to Carleton English at carleton.english@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed exchange-traded fund has been rising, but it has nothing to do with GameStop or AMC Entertainment \u2014two of the classic \u201cmeme stocks\u201d in its portfolio. The Roundhill MEME ETF (ticker: MEME)<\/p>\n","protected":false},"author":1,"featured_media":37210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-37209","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nA Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/microloannexus.com\/?p=37209\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus\" \/>\n<meta property=\"og:description\" content=\"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed\" \/>\n<meta property=\"og:url\" content=\"https:\/\/microloannexus.com\/?p=37209\" \/>\n<meta property=\"og:site_name\" content=\"Micro Loan Nexus\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-26T10:02:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-26T10:02:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/11\/1700992946_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/microloannexus.com\/?p=37209#article\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/?p=37209\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\"},\"headline\":\"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren’t the Reason.\",\"datePublished\":\"2023-11-26T10:02:26+00:00\",\"dateModified\":\"2023-11-26T10:02:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/microloannexus.com\/?p=37209\"},\"wordCount\":711,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/microloannexus.com\/?p=37209#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/microloannexus.com\/?p=37209\",\"url\":\"https:\/\/microloannexus.com\/?p=37209\",\"name\":\"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/#website\"},\"datePublished\":\"2023-11-26T10:02:26+00:00\",\"dateModified\":\"2023-11-26T10:02:27+00:00\",\"description\":\"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed\",\"breadcrumb\":{\"@id\":\"https:\/\/microloannexus.com\/?p=37209#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/microloannexus.com\/?p=37209\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/microloannexus.com\/?p=37209#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/microloannexus.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren’t the Reason.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/microloannexus.com\/#website\",\"url\":\"https:\/\/microloannexus.com\/\",\"name\":\"Solutions For Real\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/microloannexus.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/microloannexus.com\/#organization\",\"name\":\"Solutions For Real\",\"url\":\"https:\/\/microloannexus.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"width\":690,\"height\":64,\"caption\":\"Solutions For Real\"},\"image\":{\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/microloannexus.com\"],\"url\":\"https:\/\/microloannexus.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus","description":"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/microloannexus.com\/?p=37209","og_locale":"en_US","og_type":"article","og_title":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus","og_description":"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed","og_url":"https:\/\/microloannexus.com\/?p=37209","og_site_name":"Micro Loan Nexus","article_published_time":"2023-11-26T10:02:26+00:00","article_modified_time":"2023-11-26T10:02:27+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/11\/1700992946_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/microloannexus.com\/?p=37209#article","isPartOf":{"@id":"https:\/\/microloannexus.com\/?p=37209"},"author":{"name":"News Room","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a"},"headline":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren’t the Reason.","datePublished":"2023-11-26T10:02:26+00:00","dateModified":"2023-11-26T10:02:27+00:00","mainEntityOfPage":{"@id":"https:\/\/microloannexus.com\/?p=37209"},"wordCount":711,"commentCount":0,"publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/microloannexus.com\/?p=37209#respond"]}]},{"@type":"WebPage","@id":"https:\/\/microloannexus.com\/?p=37209","url":"https:\/\/microloannexus.com\/?p=37209","name":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren't the Reason. | Micro Loan Nexus","isPartOf":{"@id":"https:\/\/microloannexus.com\/#website"},"datePublished":"2023-11-26T10:02:26+00:00","dateModified":"2023-11-26T10:02:27+00:00","description":"Shares of AMC are down more than 20% this month as investors remain cool to formerly hot \u201cmeme stocks.\u201d David Paul Morris\/Bloomberg A meme-themed","breadcrumb":{"@id":"https:\/\/microloannexus.com\/?p=37209#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/microloannexus.com\/?p=37209"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/microloannexus.com\/?p=37209#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/microloannexus.com\/"},{"@type":"ListItem","position":2,"name":"A Meme ETF Has Beaten the Market Lately. AMC and GameStop Aren’t the Reason."}]},{"@type":"WebSite","@id":"https:\/\/microloannexus.com\/#website","url":"https:\/\/microloannexus.com\/","name":"Solutions For Real","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/microloannexus.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/microloannexus.com\/#organization","name":"Solutions For Real","url":"https:\/\/microloannexus.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","width":690,"height":64,"caption":"Solutions For Real"},"image":{"@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","caption":"News Room"},"sameAs":["https:\/\/microloannexus.com"],"url":"https:\/\/microloannexus.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/37209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37209"}],"version-history":[{"count":1,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/37209\/revisions"}],"predecessor-version":[{"id":37211,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/37209\/revisions\/37211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/media\/37210"}],"wp:attachment":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}