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From Twitter To Your Portfolio: Unlock The Power Of Social Media

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  • In today's world, with the current state of technology and mass social media adoption, it is possible to measure social sentiment by the millions.
  • The BUZZ NextGen AI US Sentiment Leaders Index employs leading edge analytics to harness the collective conviction of millions of investors.
  • The index is dynamic and keeps the portfolio of stocks current by reviewing picks each month, dropping stocks that have declined in investor sentiment and adding others where sentiment has increased.

Millions of people use social media and other online platforms to express opinions and share ideas - including those related to their stock portfolio. The vast amount of content generated across these platforms contains valuable insights that can help investors gain a potential edge over the broader market.

Gaining an Edge from Social Media

Social media platforms have exploded, since first appearing in the early 2000s. In the U.S., about 80% of the population now use these platforms, up from 10% in 20081. From its start as a place to stay in touch with family and post cute baby animal pictures, social media has transformed into a real-time news outlet, oftentimes breaking news before traditional media. Beyond just a news source, people are increasingly using them as online-communities to share opinions about stocks and other financial topics. The introduction and adoption of stock cashtags ($+ticker) as well as the creation of dedicated investment platforms, like Stocktwits, and dozens of others have helped solidify this movement and fuel the growth of investment-related online discussions. The millions of interactions across these platforms have created a rich and valuable dataset that gives insight into the potential of different stocks. This underpins a social media investing strategy that is powered by investor sentiment.

Social Insights Have Led to Outperformance vs. the S&P 500

8/18/2016 - 1/31/2021

Social Insights Have Led to Outperformance vs. the S&P 500

Source: FactSet, Data as of 1/31/2021. Performance data quoted represents past performance. Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. Prior to 3/02/2021, VanEck Vectors Social Sentiment ETF had no operating history. For fund performance current to the most recent month-end, visit vaneck.com.

A Strategy Powered by the People

Proponents of behavioral finance have long known that investor sentiment and emotions can have an impact on the price and

This article was written by

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VanEck’s mission is to offer investors intelligently designed investment strategies that capitalize on targeted market opportunities. VanEck seeks to provide long-term competitive performance through active and index strategies based on creative investment approaches and portfolio delivery.At VanEck we are driven by innovation, our hallmark since the company’s founding in 1955. Our efficiently-constructed investment strategies benefit from our experience and in-depth knowledge of targeted asset classes. Our actively managed VanEck Funds target natural resource equities and commodities, emerging market equities, global fixed income, and liquid alternatives. Security selection is the cornerstone of our approach to managing these funds. Our index-based VanEck Vectors ETFs are purpose-built, aimed at either providing exposure to asset classes that are underrepresented in investor portfolios or offering a superior approach to established investment categories. We offer unique, actively managed investment portfolios in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Headquartered in New York City, we have a network of offices worldwide, including offices in Sydney (Australia), Shanghai (China), Frankfurt (Germany), Madrid (Spain), and Pfaeffikon (Switzerland).Disclosure: http://www.vaneck.com/seeking-alpha-terms-and-conditions/

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