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

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

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

Roundhill mentioned 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 revolt however have grown right into a revolution,” Dave Mazza, CEO of Roundhill Investments, mentioned in a press launch. “With MEME, we provide buyers a software to seize that energy by way of an actively managed ETF that may rotate shortly into the shares dominating the dialog right this moment.”

Its earlier run presents a cautionary story. The ETF went dwell in early December of that 12 months, 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 practically 10%. The broad S&P 500 shed greater than 3% in that timeframe.

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

“Meme shares had 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 shoppers 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 may be taken as “one other signal of some exuberance,” he warned.

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

In right this moment’s fund, Opendoor Applied sciences is the biggest holding with a weight of greater than practically 12%, in line with Roundhill knowledge as of Wednesday. The inventory — which completed final 12 months under $2 a share — has skyrocketed practically 450% this 12 months amid consideration from hedge fund supervisor Eric Jackson.