Meme stock resurgence prompts return of central meme investment fund

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NEW YORK (AP) — A resurgence of meme stock interest has prompted the return of a one-stop fund for the volatile and quirky investments.

Roundhill Investments is launching a meme ETF, which is an exchange-traded fund consisting solely of meme stocks. Several of those stocks have ridden a wave of meme investment sentiment this year. The move comes two years after the provider of ETFs closed the fund because of slumping interest. The new fund trades under the “MEME” symbol.

Investors have been sporadically turning to meme stocks throughout 2025 in an effort to find bargains amid a very pricey stock market. The S&P 500 has had a busy year setting records. That has made it more difficult for investors to find stocks at lower prices that have potential for growth.

“Meme stocks started as a rebellion but have grown into a revolution,” said Dave Mazza, CEO of Roundhill Investments. "With MEME, we offer investors a tool to capture that power through an actively managed ETF that can rotate quickly into the stocks dominating the conversation today.”

The biggest weight in the ETF is Opendoor Technologies, which has had a volatile year. The real estate company’s stock was trading below $1 per share through early July, then surged above $3 that month as hedge fund manager Eric Jackson touted the stock on X. It fell back a bit, then gained more steam and closed above $9 on Tuesday.

Other heavyweights in the index include Plug Power, which focuses on hydrogen fuel cell technology, and data center company Applied Digital.

Meme stocks include companies with financial prospects that appear dim, but then gain ground for no seemingly fundamental reason. The stock gains are often fueled by online forums.

The stocks are often the target of “short sellers,” or investors betting against the stock. That sometimes prompts other investors to start buying the stock in an effort to get the people betting against the stock to do the same in order to cushion their own losses. This starts a cycle that further boosts the stock price.

It's a risky strategy and the gains can evaporate as quickly as they came.

Some of the more well-known meme stocks making big moves earlier this year included doughnut maker Krispy Kreme, camera maker GoPro and plant-based meat maker Beyond Meat.

The original meme stock is GameStop. In 2021, the company was struggling to survive and major investors were betting against the video game retailer. Investor Keith Gill, better known as “Roaring Kitty,” rallied other investors to join him in buying up thousands of GameStop shares, changing the trajectory of the stock.