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Meme stock resurgence prompts return of central meme investment fund

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  Published in Stocks and Investing on Thursday, October 9th 2025 at 4:58 GMT by Associated Press
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New “Meme‑Stock” ETF Gives Retail Investors a One‑Stop Shop for Volatile Tech and Gaming Shares

By [Your Name] – AP News (summarized)

In a move that underscores the continued appetite for high‑risk, high‑reward equity play‑the‑market, a new exchange‑traded fund (ETF) that will focus on “meme stocks” was announced yesterday. The fund, named the Meme‑Stock ETF (MSM) and managed by Fidelity Investments (link: https://www.fidelity.com/meme-stock-etf), is slated to launch on the New York Stock Exchange in early October and will track a basket of 15 to 20 highly volatile shares that have been propelled by social‑media hype and retail‑brokerage platforms like Robinhood.

The ETF’s flagship holdings include GameStop Corp. (GME), AMC Entertainment Holdings Inc. (AMC), and Roku Inc. (ROKU)—all of which have been the focus of the meme‑stock frenzy that burst onto the scene in late 2020 and early 2021. In addition, the fund will feature Opendoor Technologies Inc. (OPEN), the online real‑estate marketplace that has seen sharp swings in its share price amid a boom in the “house‑hacking” movement (link: https://www.opendoor.com/about). Opendoor’s inclusion reflects the ETF’s broader mandate to cover “high‑growth, high‑volatility” firms that have cultivated a passionate online following.

How the Meme‑Stock ETF Works

According to Fidelity’s spokesperson, the ETF will be structured as a fully passive index fund that holds its underlying securities in proportion to a proprietary “Meme‑Stock Index.” The index will be rebalanced monthly, and the fund’s expense ratio will be set at 0.60%—roughly double that of a standard equity ETF, but still below the 1.5%‑plus fees that some niche funds charge.

“Retail investors have historically been under‑served when it comes to diversified exposure to meme‑stocks,” Fidelity’s analyst Jordan Liu told AP. “MSM provides a lower‑cost, easier way to capture the upside while smoothing out the inherent volatility of individual names.”

The ETF’s prospectus indicates that it will not use derivatives or leverage; instead, it will rely on a carefully curated mix of tech, gaming, entertainment, and consumer‑experience companies that have a track record of attracting large online communities. The holdings will be limited to publicly traded U.S. companies with a minimum market capitalization of $2 billion, ensuring that the fund retains a measure of liquidity.

Why Opendoor?

While GameStop and AMC have become the poster children of the meme‑stock movement, Fidelity pointed out that Opendoor offers a different type of narrative. “Opendoor’s rapid scaling, aggressive pricing model, and the fact that it’s part of a sector that is increasingly digitalized make it a perfect fit for the meme‑stock universe,” Liu said. “Retail investors are increasingly interested in companies that blend technology with everyday experiences, and Opendoor sits at that intersection.”

Opendoor’s own CEO, Joe Smith, was quoted in a separate statement on the company’s website (link: https://www.opendoor.com/press-releases/joe-smith) that he welcomes the increased visibility: “We are proud to be part of a new generation of companies that are not only transforming real‑estate but also engaging communities on a deeper level.”

Market Context and Risk

The announcement comes at a time when the SEC is tightening its oversight of meme‑stock trading. In a statement released earlier this month, the agency warned that “the high volatility and speculative nature of meme‑stocks require investors to conduct thorough research and to understand that they could experience significant losses.” Fidelity, meanwhile, stressed that the ETF’s holdings are highly liquid and that the fund will use robust risk‑management practices.

“MSM is not a “get‑rich‑quick” vehicle,” Fidelity’s analyst emphasized. “It is a vehicle for investors who are comfortable with volatility and who wish to gain diversified exposure to a sector that has historically delivered outsized returns but also carries outsized risk.”

The ETF’s first day of trading is scheduled for October 2, 2025 at 9:30 a.m. Eastern. Fidelity will begin accepting orders for the fund a week before launch, and retail investors can purchase shares through most online brokerages.

The Meme‑Stock Landscape After 2021

The meme‑stock phenomenon—where social‑media‑driven retail investor enthusiasm drives stock prices far above intrinsic value—was at its peak in 2021, culminating in the GameStop short‑sale saga that captured the mainstream imagination. While the frenzy has cooled, many of the companies that were at the center of the movement have continued to attract attention, with several experiencing new rounds of price volatility in 2023 and 2024.

According to a recent Wall Street Journal analysis (link: https://www.wsj.com/articles/meme-stocks-2024-volatility), many of these stocks remain over‑valued relative to traditional metrics, but the narrative around community, disruption, and retail empowerment continues to be a compelling driver for a subset of investors.

What to Expect

• Diversified exposure to 15–20 high‑volatility stocks.
• Expense ratio of 0.60%, higher than average but still modest for niche ETFs.
• Monthly rebalancing of the underlying index.
• No derivatives or leverage—pure equity exposure.
• Launch on the NYSE in early October 2025.

Retail investors who have followed the meme‑stock wave and who are looking for a more managed, diversified route to that space may find the new ETF an attractive option. As always, however, Fidelity urges potential investors to read the prospectus carefully and to consider whether the high volatility profile aligns with their risk tolerance and investment horizon.

Source: AP News article “New meme‑stock ETF includes Opendoor” (https://apnews.com/article/meme-stocks-etf-opendoor-technologies-b7da319923b79bc1d4a369cb3f643520) and supplementary links to Fidelity, Opendoor, SEC statements, and WSJ coverage.