BUZZ Index Leads Amid Rising Geopolitical Tensions

Equity markets continued to advance during the recent period between index selection dates (May 8, 2025 – June 12, 2025, the “Period”), supported by strong earnings, stabilizing inflation trends, and persistent leadership from large-cap technology and AI-related names. The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index")returned 12.2%, outperforming the S&P 500 and Nasdaq Composite, which gained 6.9% and 9.8%, respectively. Breadth improved as the rally extended beyond mega-cap tech into consumer discretionary and select industrials. Inflation data released during the Period pointed to continued moderation, keeping expectations for Federal Reserve policy easing intact, although the timing remains highly data-dependent. Meanwhile, trade policy re-entered focus following a federal trade court’s decision to block the reinstatement of broad Trump-era tariffs. That ruling was quickly paused by a federal appeals court, temporarily allowing the tariffs to stand. The sequence introduced legal uncertainty around future trade enforcement and added a layer of complexity to the evolving cross-border policy outlook.

In fixed income, Treasury yields drifted modestly lower as markets interpreted softening labor data and cooler inflation prints as supportive of a less restrictive policy path. Credit markets remained constructive, with spreads tightening slightly. Commodity markets reflected rising geopolitical tensions. WTI crude oil prices rose more than 14% during the Period, driven in part by escalating unrest in the Middle East and renewed concerns about supply disruption. Gold held steady as investors maintained exposure to perceived hedges amid lingering macro and political risks. Overall, the Period was characterized by strong equity performance, a constructive macro backdrop, and a market increasingly attuned to shifting policy signals across monetary, trade, and geopolitical dimensions.

The BUZZ Index returned 13.50% during the month of May compared to a return of 6.29% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 8.33% and 1.06%, respectively, as of the end of May.

Shares of AST SpaceMobile pace BUZZ Index Gains

Shares of AST SpaceMobile (NASDAQ: ASTS) gained 46% during the Period, driven in part by renewed investor focus following a highly publicized dispute between President Trump and Elon Musk. In our view, the escalating tension—culminating in Trump threatening to cancel federal contracts with Musk’s companies—may have shifted market attention toward alternative players in the satellite communications space. ASTS, often seen as a challenger to Musk’s Starlink, appeared to benefit from the perception that a breakdown in the Trump–Musk alliance could rebalance competitive dynamics. This political backdrop coincided with a series of company-specific positives, including a $43 million contract with the U.S. Space Development Agency and growing expectations around the commercialization of its satellite-to-cell service later this year. While some portion of the move may reflect speculation, the combination of policy headlines, strategic milestones, and a rising profile within the space-based connectivity theme helped position ASTS as a top performer in the BUZZ Index this month.

Top BUZZ Index Contributors: May 8, 2025 – June 12, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.

Shares of GameStop Corporation among declining stocks in the BUZZ Index

Shares of GameStop Corporation (GME) declined 17% during the Period, with the move largely driven by investor reaction to the company’s second zero-coupon convertible note offering in just three months. On June 11, GameStop announced a $1.75 billion private offering of 0.00% convertible senior notes due 2032, following a similar $1.3 billion raise in March. In our view, the offering raised renewed concerns around future dilution and the company’s evolving financial strategy, particularly given that proceeds may be used for additional Bitcoin purchases, in line with its revised treasury policy. Although GameStop reported a return to profitability in Q1, a 17% year-over-year revenue decline and the speculative nature of its crypto-oriented investments may have weighed on investor confidence. The Period’s performance reflects the tension between GameStop’s strategic pivot and uncertainty around long-term execution in a highly volatile segment of the market.

Bottom BUZZ Index Contributors: May 8, 2025 – June 12, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.

BUZZ Index June 2025 Rebalance Highlights

Unity Software Inc.

Unity Software Inc. (NYSE: U) has spent the past year navigating the fallout from a highly criticized overhaul of its game engine monetization model, which strained relations with its core developer base. In the months since, the company has taken visible steps to rebuild credibility, and those efforts appear to be gaining traction. While controversy initially dominated online discourse, the narrative has shifted, with recent discussion framing Unity as a potential value opportunity. Some investors have even drawn parallels to GameStop’s pre-2021 setup, fueled in part by a cryptic January post from Keith Gill, better known as “Roaring Kitty”, that included a subtle nod to a track titled “Unity.” Though the stock has traded relatively flat over the past year, engagement and visibility across social platforms have steadily climbed. This renewed focus elevates Unity to a maximum 3% weighting in the BUZZ Index this month, reflecting its growing presence in investor conversations.

Lululemon Athletica Inc.

On June 5, Lululemon Athletica Inc. (NASDAQ: LULU) reported first-quarter results that topped expectations on both revenue and global sales growth. However, the company cut its full-year guidance, citing persistent tariff uncertainty and mounting macroeconomic headwinds. CEO Calvin McDonald flagged signs of a slowing U.S. economy and more cautious consumer behavior, particularly in discretionary spending. The market’s reaction was swift and decisive as LULU shares fell 20% the following day, the steepest single-session drop since 2020. Year-to-date, the stock is now down over 35%, diverging sharply from the broader market, with the S&P 500 up more than 3% over the same period. Despite the drawdown, investor interest has turned more constructive in recent weeks, with some framing LULU as a potential value opportunity, especially as trade-related concerns appear to be easing. This month, LULU re-enters in the BUZZ Index with a 0.96% weight, reflecting renewed attention from the online investor community.