ETFs
Are Meme Stocks Ready to Tear Again? Here are 2 ETFs to ride the latest wave
Are Meme Stocks Ready to Tear Again? Here are 2 ETFs to ride the latest wave
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Meme stocks are once again taking center stage following the return of Keith Gill, better known as “Roaring Kitty,” to social media after a nearly three-year hiatus. Gill, a central figure in the meme stock phenomenon that shook the market in early 2021, has reignited interest in these volatile but potentially lucrative investments.
GameStop Inc. (NASDAQ:GME), the struggling video game retailer at the heart of the meme stock market frenzy, saw a staggering 60.1% gain on Tuesday, closing at $48.75 after hitting a high of $64.83 earlier in the daytime. The push follows Gill’s recent social media post, which garnered more than 19 million views and sparked a viral reaction among investors.
AMC Entertainment Holdings, Inc. (NYSE:AMC), another major meme stock, also saw significant gains, up 31.98% on Tuesday. The renewed interest in meme stocks has investors wondering if this is the start of another wild ride.
For those looking to capitalize on the latest wave of meme stocks, two exchange-traded funds (ETFs) stand out as potential vehicles:
Schwab Crypto Thematic ETF (NYSE:STCE)
The Schwab Crypto Thematic ETF gained 3.96% on Tuesday, benefiting from its unique combination of investments in key cryptocurrency companies and meme-related stocks. By combining digital finance with viral market trends, this ETF provides exposure to the dynamic world of meme stocks and cryptocurrencies.
The fund’s top holdings include MicroStrategy Incorporated (NASDAQ:MSTR), Coinbase Global, Inc. (NASDAQ:PIECE OF MONEY), CleanSpark, Inc. (NASDAQ:CLSK) and Marathon Digital Holdings, Inc. (NASDAQ:MARA). GameStop is also in the fund’s portfolio, with a weighting of 1.96%.
Amplify Video Game Technology ETF (NYSE:GAMR)
The Amplify Video Game Tech ETF, which gained 5.11% on Tuesday, is another option for investors seeking exposure to meme stocks. The fund invests at least 80% of its net assets in companies whose primary activity is supporting or utilizing the video game industry.
Top holdings include GameStop Corp (NYSE:GME), Bilibili Inc (NASDAQ:BILI), and Embracer Group AB (EMBRACB SS). GameStop alone represents 5.29% of the fund’s market value, making it a significant player in the ETF’s performance.
Although meme stocks offer the potential for quick gains, investors should be aware of the risks associated with these highly volatile investments. Unlike traditional stocks, which are influenced by fundamental analysis and company performance, meme stocks are often subject to rapid price changes driven by media hype and mass trading actions.
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Target more sustainable, long-term gains
For those looking for more reliable long-term gains, an investment like Cityfunds may be a more suitable option. Cityfunds offers investors the opportunity to own fractional shares of high-quality homes in America’s top-performing cities. By investing in a diversified portfolio of carefully selected properties, investors can benefit from the potential appreciation of the real estate market without the volatility associated with meme stocks.
With a low minimum investment of $500 and a user-friendly platform, City fund makes it easy for investors to create wealth through real estate. Cityfunds’ experienced team handles all aspects of management, allowing investors to benefit from passive income and long-term growth potential without the hassle of direct ownership.
Click here to explore cities you can invest in through Cityfunds.
As the meme stock phenomenon reignites, investors should carefully consider their risk tolerance and investment objectives before jumping in. While ETFs like STCE and GAMR provide exposure to this exciting market segment, more risk-averse investors can find greater peace of mind and stability in the real world. real estate investments like City fund. Ultimately, a well-diversified portfolio that balances high-risk, high-return investments with more stable long-term growth opportunities can be the key to financial success in these unpredictable times.
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