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BUZZ Investing: 2022's Hard Hit Stocks Continue To Rebound In 2023

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Domestic equities roared retired of nan gross to commencement nan New Year, pinch nan astir wide followed indices posting their champion January returns successful 4 years. The BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index” aliases “Index”) outpaced some nan Nasdaq Composite Index and nan S&P 500 Index during nan caller play betwixt Index action dates (January 11, 2023 to February 9, 2023, nan “Period”) arsenic exertion and thematic-oriented equities rallied sharply. Some marketplace commentators attributed nan rally to continued signs that ostentation whitethorn beryllium cooling. This move supports those that foresee a ‘soft-landing’ result much apt than a heavy and prolonged home recession. Long-duration ‘risky’ assets paced gains during nan month, led by galore of nan hardest deed stocks during 2022.

The beardown commencement to nan twelvemonth served arsenic a reddish emblem to immoderate market observers who noted that nan speculative activity was fueled by investors who willfully disregarded persistent inflationary pressures and a hawkish U.S. Federal Reserve (the Fed), which together whitethorn service arsenic a headwind to firm profit margins successful nan coming year. A amazingly beardown Jobs study revealed nan home unemployment complaint fell to 3.4%, nan lowest complaint since May 1969, while costs maturation remained robust. Stocks swooned connected nan study while 2-yr authorities enslaved yields rallied, nearing their caller Q4 2022 peak. The study confirmed to immoderate investors that nan Fed mightiness person to raise rates astatine an fierce gait to curb employment request and forestall ostentation from rising excessively quickly.

The BUZZ NextGen AI US Sentiment Leaders Index returned 18.62% during nan period of January compared to a return of 6.28% for nan S&P 500 Index during nan aforesaid period.

Shares of Electric Vehicle (“EV”) Manufacturers Pace Advancing Stocks wrong nan BUZZ Index

The January ‘BUZZ Investing’ blog highlighted EV manufacturers, noting that nan weight of Rivian Automotive Inc. (RIVN) successful nan Index jumped to 1.38 while shares of Tesla Inc. (TSLA) and Lucid Group Inc. (LCID) each carried a maximum 3% weight during nan scheduled Index rebalance and reconstitution. We remarked that affirmative investor sentiment has precocious been noticeably expanding toward EV manufacturers and that nan surge whitethorn foretell that nan assemblage whitethorn beryllium adjacent to a bottom. The remarks proved prescient arsenic shares of TSLA, LCID, and RIVN jumped 68.3%, 30.0%, and 13.7%, respectively, during nan Period, returns which served arsenic immoderate of nan starring contributors to Index returns.

Top BUZZ Index Contributors: January 11, 2023 – February 9, 2023
Company Ticker Average Weight (%) Return Contribution (%)
Tesla Inc TSLA 3.26 1.95
NVIDIA Corp NVDA 3.27 1.16
Coinbase Global Inc COIN 3.72 1.12
Meta Platforms Inc META 3.32 0.98
Lucid Group Inc LCID 3.36 0.92
Advanced Micro Devices Inc AMD 2.84 0.54
DraftKings Inc DKNG 1.83 0.44
Shopify Inc SHOP 1.47 0.44
Apple Inc AAPL 2.92 0.38
Microsoft Corp MSFT 2.63 0.36

Source: BUZZ Holdings ULC, Bloomberg. Past capacity is nary guarantee of early results. Index capacity is not schematic of money performance. Not intended arsenic a proposal to bargain aliases to waste immoderate of nan securities mentioned herein.

The apical detractors to capacity featured respective stocks from nan Healthcare assemblage during nan Period. Moderna Inc. (MRNA) and Pfizer (PFE) each fell pursuing comments from PFE successful its 2023 outlook, which elaborate softer gross estimates for its Covid vaccine than immoderate analysts expected. Shares of Intel Corp (INTC) were a notable detractor to Index capacity arsenic its shares fell 6.4% connected January 27th, nan time aft nan institution reported net that vastly missed investor expectations. Waning request for individual computers continues to measurement connected INTC’s halfway business, starring nan institution to forecast early losses while projecting revenues to beryllium astatine their lowest levels since 2010. The results and outlook for nan storied chipmaker stood successful stark opposition to rival NVIDIA Corp (NVDA), whose lineup of schematic processors is benefitting from accrued request for artificial intelligence applications and gaming platforms. NVDA, a apical contributor wrong nan scale during nan Period, has gained astir 53% successful 2023, compared to conscionable 6% for INTC.

Bottom BUZZ Index Contributors: January 11, 2023 – February 9, 2023
Company Ticker Average Weight (%) Return Contribution (%)
Moderna Inc MRNA 1.27 -0.20
Enphase Energy Inc ENPH 0.91 -0.13
Pfizer Inc PFE 1.06 -0.08
Walmart Inc WMT 1.38 -0.07
Intel Corp INTC 1.09 -0.06
Plug Power Inc PLUG 1.13 -0.06
Southwest Airlines Co LUV 0.97 -0.06
Cisco Systems Inc CSCO 0.26 -0.05
Agilent Technologies Inc A 0.43 -0.05
Zoom Video Communications Inc ZM 0.28 -0.05

Source: BUZZ Holdings ULC, Bloomberg. Past capacity is nary guarantee of early results. Index capacity is not schematic of money performance. Not intended arsenic a proposal to bargain aliases to waste immoderate of nan securities mentioned herein.

Sentiment Stock Highlight – Meta Platforms, Inc.

Meta Platforms, Inc. (META), whose banal was down 64% successful 2022, is simply a notable illustration of a exertion banal that has rebounded sharply successful 2023. Its portfolio of societal platforms, which includes Facebook, Instagram, and WhatsApp, has provided META pinch a ascendant marketplace stock successful nan societal media landscape. CEO Mark Zuckerberg's dense spending connected nan company's "Metaverse" investments complete nan past twelvemonth person proved costly, pinch still nary meaningful gross generated from its virtual reality world dubbed “Horizon Worlds.” In its astir caller earnings, Meta did not stress further spending connected nan Metaverse, alternatively focusing connected nan renewed maturation successful Facebook’s regular progressive users (DAU), which has surpassed 2 cardinal and announcing a $40B banal buyback program. The news came arsenic a affirmative astonishment to galore investors, and nan banal soared complete 20% connected nan time of nan announcement.

META has consistently been 1 of nan astir talked astir stocks crossed societal platforms. Its aggregate speech measurement typically provides capable standard and affirmative sentiment to let for its inclusion wrong nan BUZZ Index. Throughout 2022, META was consistently 1 of nan apical detractors of BUZZ Index performance. Notable successful nan floor plan below, META’s weight successful nan Index began to autumn arsenic its stock value reached record-high levels successful nan 2nd half of 2021. In October 2021, nan institution formally known arsenic Facebook announced it would alteration its sanction to Meta Platforms to bespeak its committedness to nan Metaverse. This ideological pivot proved ominous arsenic users were slow to adopt to nan virtual reality level while advertisers began to drift distant from nan company’s halfway societal platforms. As shares of META fell from their peak, investor sentiment began to increase, buoyed by nan company’s plans to trim costs and pivot its attraction backmost to its halfway societal platforms. This month, META is nan 2nd largest sentiment gainer of each stocks successful nan Index and maintains its maximum 3% weight successful nan Index.

Meta Platforms Stock Price | January 2021 – February 2023

Meta Platforms Stock Price | January 2021 - February 2023

Source: BUZZ Holdings ULC, Bloomberg. Past capacity is nary guarantee of early results. Index capacity is not schematic of money performance. Not intended arsenic a proposal to bargain aliases to waste immoderate of nan securities mentioned herein.

BUZZ Index February 2023 Rebalance Highlights

Technology Sector

Equities started nan twelvemonth strong, pinch a broad-based rally helping to propel galore stocks to their champion monthly capacity successful respective years. Better-than-expected ostentation information and nan Fed’s acknowledgment of easing value pressures sparked speculation that nan tightening rhythm could beryllium ending soon. A activity of buying sparked short covering successful galore of nan heavy shorted stocks successful nan market, and galore underperformers from 2022 had large rallies successful January. High-beta tech names were nan biggest gainers, and affirmative investor sentiment has risen commensurately. This month, Advanced Micro Devices, Inc. (AMD) and Netflix, Inc. (NFLX) are some featured successful nan Index pinch a maximum 3% weight. Several different acquainted exertion stocks, specified arsenic Shopify (SHOP) and Intel (INTC), each accrued successful weight during nan February rebalance. Last month's capacity was 1 of nan champion starts to nan twelvemonth for galore of these stocks, and rising investor sentiment whitethorn propose much upside to come.

Important Disclosures

Company information is nan root for each peculiar institution accusation quoted.

Definitions: The S&P 500 is simply a banal marketplace scale of 500 of nan largest companies listed connected banal exchanges successful nan United States. The Nasdaq Composite Index is simply a banal marketplace scale that consists of nan stocks that are listed connected nan Nasdaq banal exchange. S&P Banks Select Industry Index comprises stocks successful nan S&P Total Market Index that are classified successful nan GICS plus guidance & custody banks, diversified banks, location banks, different diversified financial services and thrifts & owe finance sub-industries. Markit CDX North America High Yield Index represents 1 100 liquid North American entities pinch precocious output in installments ratings arsenic published by Markit. COBE VIX Index is simply a real-time marketplace scale representing nan market's expectations for volatility complete nan coming 30 days.

This is not an connection to bargain aliases sell, aliases a proposal to bargain aliases waste immoderate of nan securities/financial instruments mentioned herein. The accusation presented does not impact nan rendering of personalized investment, financial, legal, aliases taxation advice. Certain statements contained herein whitethorn represent projections, forecasts and different guardant looking statements, which do not bespeak existent results, are valid arsenic of nan day of this connection and taxable to alteration without notice. Information provided by 3rd statement sources are believed to beryllium reliable and person not been independently verified for accuracy aliases completeness and cannot beryllium guaranteed. VanEck does not guarantee nan accuracy of 3rd statement data. The accusation herein represents nan sentiment of nan author(S), but not needfully those of VanEck.

An finance successful nan Fund whitethorn beryllium taxable to risks which include, among others, risks related to societal media analytics, equity securities, medium-capitalization companies, accusation exertion sector, connection services sector, user discretionary sector, market, operational, precocious portfolio turnover, scale tracking, authorized subordinate concentration, nary guarantee of progressive trading market, trading issues, passive management, money shares trading, premium/discount and liquidity of money shares, non-diversified and index-related attraction risks, each of which whitethorn adversely impact nan Fund. Medium-capitalization companies whitethorn beryllium taxable to elevated risks.

Investing successful companies based connected societal media analytics involves nan imaginable consequence of marketplace manipulation because societal media posts whitethorn beryllium made pinch an intent to inflate, aliases different manipulate, nan nationalist cognition of a institution banal aliases different investment. Although nan Sentiment Leaders Index supplier attempts to mitigate nan imaginable consequence of specified manipulation by employing screens to place posts which whitethorn beryllium machine generated aliases deceptive and by employing marketplace capitalization and trading measurement criteria to region companies which whitethorn beryllium much apt targets for specified manipulation, location is nary guarantee that nan Sentiment Leaders Index's exemplary will successfully trim specified risk. Furthermore, matter and sentiment study of societal media postings whitethorn beryllium inaccurate successful predicting a company's banal performance.

An investor cannot put straight successful an index. Returns bespeak past capacity and do not guarantee early results. Results bespeak nan reinvestment of dividends and superior gains, if any. Certain indices whitethorn return into relationship withholding taxes. Index returns do not correspond Fund returns. The Index does not complaint guidance fees aliases brokerage expenses, nor does nan Index lend securities, and nary revenues from securities lending were added to nan capacity shown.

BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) is simply a merchandise of BUZZ Holdings ULC (“BUZZ Holdings”), and has been licensed to Van Eck Associates Corporation for usage successful relationship pinch nan VanEck Social Sentiment ETF.

BUZZ” is simply a trademark of BUZZ Holdings, which has been licensed by Van Eck Associates Corporation for usage successful relationship pinch nan BUZZ Index.

VanEck Social Sentiment ETF is not sponsored, endorsed, sold aliases promoted by BUZZ Holdings, aliases its shareholders, aliases nan licensor of nan BUZZ Index and/or its affiliates and 3rd statement licensors. BUZZ Holdings makes nary practice aliases warranty, definitive aliases implied, to nan owners of nan VanEck Social Sentiment ETF aliases immoderate personnel of nan nationalist regarding nan advisability of investing successful securities mostly aliases successful VanEck Social Sentiment ETF, peculiarly aliases nan expertise of nan BUZZ Index to way wide marketplace performance.

BUZZ Holdings’ only narration to Van Eck Associates Corporation pinch respect to nan BUZZ Index is nan licensing of nan BUZZ Index and definite trademarks of BUZZ Holdings. The BUZZ Holdings are wished and composed by BUZZ Holdings without respect to Van Eck Associates Corporation aliases nan VanEck Social Sentiment ETF. BUZZ Holdings has nary responsibility to return nan needs of Van Eck Associates Corporation aliases nan owners of VanEck Social Sentiment ETF into information successful determining and composing nan BUZZ Index.

BUZZ Holdings are not responsible for and person not participated successful nan determination of nan prices of VanEck Social Sentiment ETF aliases nan timing of nan issuance aliases waste of securities of VanEck Social Sentiment ETF aliases successful nan determination aliases calculation of nan equation by which VanEck Social Sentiment ETF securities whitethorn beryllium converted into cash, surrendered, aliases redeemed, arsenic nan lawsuit whitethorn be. BUZZ Holdings person nary responsibility aliases liability successful relationship pinch nan administration, trading aliases trading of VanEck Social Sentiment ETF. There is nary assurance that finance products based connected nan BUZZ Index will accurately way scale capacity aliases supply affirmative finance returns. BUZZ Holdings is not an finance advisor and nan inclusion of a information successful nan BUZZ Index is not a proposal by BUZZ Holdings to buy, sell, aliases clasp specified security, nor should it beryllium considered finance advice.

BUZZ HOLDINGS DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE BUZZ INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS). BUZZ HOLDINGS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. BUZZ HOLDINGS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY Van Eck Associates Corporation, OWNERS OF THE VanEck Social Sentiment ETF, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BUZZ INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL BUZZ HOLDINGS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN BUZZ HOLDINGS AND Van Eck Associates Corporation, OTHER THAN THE LICENSORS OF BUZZ HOLDINGS.

Effective August 18, 2016, BUZZ Indexes Inc. implemented changes to nan BUZZ NextGen AI US Sentiment Leaders Index building rules. The scale constituent count was accrued from 25 to 75 stocks and nan maximum constituent weight was trim from 15% to 3%. These alteration whitethorn consequence successful much a diversified vulnerability to scale constituents than nether nan rules successful effect anterior to this date. Past capacity is nary guarantee of early results.

The S&P 500®Index is simply a merchandise of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for usage by Van Eck Associates Corporation. Copyright © 2023 S&P Dow Jones Indices LLC, a section of S&P Global, Inc., and/or its affiliates. All authorities reserved. Redistribution aliases reproduction successful full aliases successful portion are prohibited without written support of S&P Dow Jones Indices LLC. For much accusation connected immoderate of S&P Dow Jones Indices LLC’s indices please sojourn S&P Dow Jones Indices S&P® is simply a registered trademark of S&P Global and Dow Jones® is simply a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their 3rd statement licensors make immoderate practice aliases warranty, definitive aliases implied, arsenic to nan expertise of immoderate scale to accurately correspond nan plus people aliases marketplace assemblage that it purports to correspond and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their 3rd statement licensors shall person immoderate liability for immoderate errors, omissions, aliases interruptions of immoderate scale aliases nan information included therein.

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