Investment company Roundhill Investments is reviving the MEME ETF — a fund based on stocks popular among retail traders. After closing in 2023 due to weak demand, Roundhill is making a second attempt, counting on renewed interest in speculative assets.
The new version of MEME ETF will be actively managed
Unlike the previous version, the new MEME ETF will be actively managed. The fund will include about two dozen volatile stocks of companies with “meme characteristics” — strong price swings, active discussion on social media, and high attention from retail investors. The initial portfolio includes Opendoor Technologies, Plug Power, and Applied Digital.
The Roundhill team will analyze not only market data but also investor sentiment online. Algorithms will track activity on Reddit, social discussions, and trading flows between retail and institutional participants.
The portfolio will be rebalanced weekly so the fund can quickly respond to trend changes and “viral” spikes in interest. The fund’s fee will be 0.69% per year.
“Retail investors still influence the market”
According to Roundhill head Dave Mazza, the influence of retail traders is underestimated today:
“For some, the word ‘meme’ still sounds unserious. But that’s an outdated perception. Retail investors continue to make up a significant part of market movement.”
Roundhill is trying to learn from the past. The first version of MEME ETF was launched in 2021 during the GameStop and AMC hype, but by 2023 the fund’s assets had shrunk to $3 million, leading to its closure. Now the company is betting on active management and a dynamic approach to stock selection.
Risks return along with retail traders
The revival of MEME ETF coincides with a rise in speculative activity amid record highs in stock indices and a new wave of risk appetite. The economic stimulus policy of the Donald Trump administration is once again pushing retail investors toward aggressive bets.
Bloomberg Intelligence analyst Athanasios Psarofagis notes that the launch of MEME ETF reflects not so much the success of the product as the phase of the market cycle:
“We see speculation returning, and investors are ready to take risks again. It’s a sign of the market’s condition.”
Similar products are already gaining popularity. The market has seen ETFs tied to individual high-risk stocks, and investment in leveraged ETFs amounts to billions of dollars.
Investors are “trading like it’s 2021” again
Nate Geraci, president of NovaDius Wealth Management, described the situation simply:
“Retail investors are acting as if it’s 2021 all over again. Their appetite for risk is enormous. For MEME ETF to succeed, it needs its own viral moment.”
Such a moment happened in January 2021, when GameStop and AMC Entertainment stocks became symbols of the retail uprising against Wall Street. Back then, thousands of traders, inspired by Reddit communities and accessible online brokers, triggered unprecedented short squeezes and made trading “meme stocks” a mass phenomenon.
Since then, the phenomenon hasn’t disappeared — it has transformed. Today, retail investors are more active than ever, and their influence on the market is growing again. Roundhill’s MEME ETF aims to reflect this new wave of speculation.
What’s next?
Roundhill hopes that the new MEME ETF can survive where the first version failed — thanks to flexibility, speed, and a sharper focus on real retail interest.
If the fund can capture market sentiment and attract investor attention, it could become a symbol of the return of the “meme investing” era and renewed trader enthusiasm.
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