Meme stock resurgence prompts return of central meme investment fund

NEW YORK (AP) — The revival of interest in meme stocks has led to the reintroduction of a comprehensive fund dedicated to these unpredictable investments.

Roundhill Investments is set to unveil a meme ETF, an exchange-traded fund that exclusively includes meme stocks. Many of these stocks have seen significant interest driven by meme culture this year. This initiative follows the closure of a similar fund two years ago due to declining interest. The newly launched fund operates under the ticker symbol “MEME.”

Throughout 2025, investors have intermittently gravitated towards meme stocks in search of opportunities amidst an otherwise expensive stock market. The S&P 500 has had a prosperous year, setting numerous records, which complicates the search for more affordably priced growth stocks.

“Meme stocks began as an act of defiance but have evolved into a notable movement,” stated Dave Mazza, CEO of Roundhill Investments. “With the launch of MEME, we provide investors a mechanism to harness that dynamic through an actively managed ETF that can swiftly shift into the stocks currently capturing investor attention.”

The top holding in the ETF is Opendoor Technologies, which has experienced a tumultuous year. Its stock traded below $1 per share until early July, when it surged above $3 after hedge fund manager Eric Jackson promoted it on X. After a slight dip, it rebounded and closed above $9 on Tuesday.

Other significant stocks in the ETF include Plug Power, specializing in hydrogen fuel cell technology, and Applied Digital, a data center company.

Meme stocks often involve companies with bleak financial outlooks that gain traction for seemingly no rational reasons, frequently driven by online discussions.

These stocks are common targets for “short sellers,” investors betting against them. This situation can prompt other investors to buy the stocks, hoping to trigger a response from short sellers that could offset their own losses, thus initiating a cycle that drives the stock price higher.

However, this strategy carries high risks, and profits can vanish as rapidly as they materialized.

Earlier this year, several prominent meme stocks made substantial gains, such as doughnut producer Krispy Kreme, camera manufacturer GoPro, and plant-based meat company Beyond Meat.

The first notable meme stock was GameStop. In 2021, the company was on the brink of collapse while large investors were betting against it. Individual investor Keith Gill, known as “Roaring Kitty,” motivated others to buy thousands of GameStop shares, significantly altering the stock’s trajectory.