Roundhill Investments has filed to revive its Meme Stock ETF, betting on renewed interest in volatile stocks driven by social media hype less than two years after shuttering the original fund.
The investment firm submitted paperwork Aug. 8 with the U.S. Securities and Exchange Commission to relaunch the exchange-traded fund under the ticker symbol MEME as an actively managed product, according to the filing. The move comes amid signs of resurging meme stock activity, with examples like Opendoor Technologies, Kohl’s and American Eagle Outfitters posting sharp gains tied to online buzz.
The original MEME ETF launched in December 2021, riding the tail end of the GameStop and AMC Entertainment frenzy that captivated retail investors on platforms like Reddit’s WallStreetBets. It tracked the Solactive Roundhill Meme Stock Index, focusing on stocks with high social media mentions and short interest. But the fund faltered, drawing limited assets and closing in December 2023 after Roundhill cited waning demand in November of that year. It posted about a 20% return in its final year but lagged broader markets.
The proposed revival shifts to active management, aiming for capital growth by putting at least 80% of assets into “meme stocks” — U.S.-listed common stocks and American depositary receipts marked by high liquidity and extreme volatility, often untethered from fundamentals. The process starts with the 200 most-traded U.S. securities, ranked by implied volatility from options pricing. The top 30 qualify, and advisers will pick 13 to 25 holdings, weighting by volatility and rebalancing weekly if needed.
Industry analysts called the self-relaunch unusual. Bloomberg ETF analyst Eric Balchunas noted it’s rare for a firm to resurrect its own failed product, likening it to the airline-themed JETS ETF revived by another issuer.
Morningstar researcher Jeffrey Ptak confirmed the filing’s goal to “resurrect” MEME, sharing a link to the SEC document.
Roundhill highlighted recent volatility in a blog post Aug. 8, pointing to meme-like surges in certain stocks against a backdrop of Federal Reserve policy shifts and global tensions.
The filing stresses risks, including sharp losses from sentiment-driven swings, cybersecurity issues and non-diversification. As a restructured fund without history in this form, it carries “new fund risk.” Fees are placeholders in the prospectus; the original charged 0.69% annually, with Roundhill handling most costs under a unitary structure.
Approval could lead to trading on an exchange like NYSE Arca later in 2025, with effectiveness targeted 60 days post-filing. Roundhill did not immediately respond to requests for comment. Investors should check the final prospectus on the SEC site.
Meme stocks have delivered big wins for some, like GameStop’s over 1,000% spike in early 2021, but many retail traders faced losses when enthusiasm waned. The relaunched MEME seeks to package that volatility, though its viability depends on sustained social media momentum in an evolving market.
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