October 15, 2015
[quote] A couple of exchange-traded funds are already tracking social media stocks.
But one soon could be tracking social media itself, according to a recent article in ETF.com.
A company called Market Prophit is currently in discussions with a variety of ETF issuers to make an ETF out of its new index called the Market Prophit Social Media Sentiment Index. This is a long/short smart beta-style index that aims to capture surgically the so-called sentiment factor on Twitter.
The index holds the 25 most-tweeted-about stocks and is reconstituted quarterly but rebalances daily.
The stocks’ daily tweets are analyzed by an algorithm to determine whether the sentiment is positive or negative. The index will then be long or short, based on sentiment from the Twitterverse on a daily basis. The stocks get a sentiment score that also determines the weight in the index in addition to market cap. In theory, it could be 100 percent long or a 100 percent short.
Currently it holds such giants as ...
Commentator on Marketplace asks: "How could that possibly go wrong?"