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Roundhill Investments has relaunched its meme-focused ETF under the symbol MEME to track retail investor trends and popular stocks. The actively managed fund differs from its original passive version by focusing on trading volume and volatility and rebalancing weekly. Its holdings include Opendoor Technologies, Plug Power, and Rigetti. Analysts note that retail investors now represent 10-20% of overall trading, with even higher influence on meme stocks. The ETF aims to reflect both market movements and the cultural trends shaped by online investor communities.
Roundhill Investments has relaunched an exchange-traded fund it had closed two years ago, aiming to track the fast-changing world of "meme" stocks and the activities of retail investors who drive these trends. The newly introduced actively managed Roundhill Meme Stock ETF, trading under the symbol MEME, seeks to benefit from renewed interest in stocks popular among retail traders, a trend that became prominent during the pandemic when a surge of new investors discussed strategies and shared stock picks on social media platforms like Reddit. Advertisement
The ETF was first introduced in 2021 to capture the initial wave of meme stock enthusiasm, which focused on companies such as AMC Entertainment and GameStop. However, it was closed two years later due to a decline in investor interest. Unlike its earlier passive version, which relied on social media mentions and short interest to determine holdings, the new ETF will focus on trading volume and price volatility. Being actively managed, it can rebalance weekly to reflect the latest trends in meme stocks and retail behavior.
The current portfolio features companies including Opendoor Technologies, a residential real estate platform; Plug Power, a fuel cell technology firm; and Rigetti, a quantum computing stock. Dave Mazza, CEO of Roundhill, noted that retail attention follows cyclical patterns, but structural drivers such as the rise of commission-free trading platforms and online communities create recurring waves of enthusiasm. The ETF aims to capture the behavior of these online communities and include companies that serve as both cultural and market touchpoints.
Analysts classify the ETF as a thematic fund, a category that historically struggles to deliver consistent long-term returns, according to Dan Sotiroff of Morningstar. Research indicates that self-directed retail investors now account for approximately 10% to over 20% of all trading, with an even higher share in stocks that capture retail interest, including meme stocks, as noted by Marco Iachini, senior VP of research at Vanda Research.
The relaunch highlights the growing influence of retail investors on market dynamics, showing how their engagement can shape trading activity around specific companies. The actively managed approach allows the fund to adapt to shifts in investor behavior and trends, reflecting both market movements and cultural relevance in stock selection.
Source Reuters
5th Jun, 2025
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