The Meme ETF is again. Is it late to the celebration once more?

Roundhill Investments resurrected an exchange-traded fund targeted on meme shares on Wednesday, aiming to present on a regular basis buyers a easy strategy to play the brand new class of buzzy-yet-volatile shares.

But when historical past repeats itself, that would sign the commerce — and broader market — is already shedding its steam.

Roundhill stated the Meme Inventory ETF, which launched once more on Wednesday, trades underneath the ticker MEME. That is the identical ticker the agency used for its earlier meme-focused ETF that launched in late 2021 earlier than closing two years later.

“Meme shares began as a rise up however have grown right into a revolution,” Dave Mazza, CEO of Roundhill Investments, stated in a press launch. “With MEME, we provide buyers a device to seize that energy via an actively managed ETF that may rotate shortly into the shares dominating the dialog at present.”

Its earlier run gives a cautionary story. The ETF went dwell in early December of that yr, simply because the Nasdaq Composite was hitting a peak. From the ETF’s 2021 launch to the announcement of its closure in late 2023, the Nasdaq tumbled almost 10%. The broad S&P 500 shed greater than 3% in that timeframe.

Properly-known meme shares fared a lot worse. GameStop plunged round 69% in that interval, whereas AMC cratered by greater than 96% within the almost two-year span.

“Meme shares have been a big a part of the exuberant sentiment within the 2020-2021 market, in the end resulting in a cyclical peak,” Jonathan Krinsky, BTIG’s chief market technician, in a Wednesday word to purchasers that identified the irony of the relaunch.

Krisnky added that the meme fund launching was an indicator of market froth “reaching fever pitch.” Roundhill’s relaunch could be taken as “one other signal of some exuberance,” he warned.

To make sure, the brand new iteration of the fund displays the brand new technology of meme shares. Through the Covid meme inventory craze, Reddit person “Roaring Kitty” and followers of the WallStreetBets discussion board led inventory squeezes of GameStop and AMC, amongst different names.

In at present’s fund, Opendoor Applied sciences is the most important holding with a weight of greater than almost 12%, in keeping with Roundhill knowledge as of Wednesday. The inventory — which completed final yr beneath $2 a share — has skyrocketed almost 450% this yr amid consideration from hedge fund supervisor Eric Jackson.