BUZZ Investing: Market Gains Broaden

Key Takeaways

• Strong performance of the BUZZ index shows a market that is heavily driven by sentiment and attention with a renewed focus on "meme stocks".
• Top contributors are Coinbase, Rocket Lab and SoFi, reflecting investor enthusiast for digitally native and social media favored companies.
• Optimism around generative AI and signals from the Federal Reserve about potential rate cuts have fueled continued market gains and risk-on sentiment. However, the rally is showing signs of fatigue as market leadership narrows.

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.

Equity markets advanced during the recent period between index selection dates (June 12, 2025 – July 10, 2025, the “Period”), extending gains from earlier in the quarter and pushing major U.S. indices further into record territory. The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index") returned 11.5% during the Period, compared to a gain of 4.0% for the S&P 500. Year to date, the BUZZ Index has returned 25.4%, outperforming/underperforming the S&P 500’s 7.5% gain. Enthusiasm around generative AI remained a dominant force, with large-cap technology continuing to lead, though signs of rally fatigue emerged as breadth narrowed. Economic data released during the Period offered a mixed picture: while the labor market showed further signs of softening, including a modest rise in unemployment claims and slower payroll growth, consumer spending remained firm and forward inflation indicators were largely stable. The Federal Reserve kept rates on hold at its June meeting and signaled a cautious but growing willingness to consider cuts later in the year, though internal divisions remain over the pace and trigger points for policy easing.

Geopolitical developments continued to influence market sentiment. The U.S. maintained a heightened military presence in the Middle East following June’s targeted strikes in Iran, though tensions appeared to stabilize as diplomatic channels reopened. In commodities, both crude oil and gold were little changed during the Period. For crude, easing geopolitical tensions offset prior supply concerns, while steady inventory data reinforced a more balanced outlook. Gold traded in a narrow range, as stable real yields and waning immediate macro risks tempered investor demand for traditional hedges. In terms of fixed income, Treasury yields edged lower, particularly at the front end, as markets priced in higher odds of a rate cut before year-end. Credit conditions remained supportive, with spreads holding firm and issuance levels consistent with seasonal norms.

Overall, the Period was characterized by persistent equity strength, resilient macro data, and a market increasingly focused on signals from the Fed and developments across key geopolitical flashpoints. The BUZZ Index returned 12.68% during the month of June compared to a return of 5.09% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 22.08% and 6.20%, respectively, as of the end of June.

Shares of crypto, space, and fintech leaders pace BUZZ Index Gains

Shares of Coinbase Global (NASDAQ: COIN) surged 61.4% during the Period, leading gains within the BUZZ Index. The move followed renewed optimism across the digital asset space, driven by a combination of rising crypto prices, increased ETF inflows, and growing retail engagement. Regulatory sentiment also appeared to improve modestly after a key SEC enforcement case was delayed, a development some investors viewed as a potential tailwind for the broader ecosystem. Rocket Lab USA (NASDAQ: RKLB) gained 48.1%, supported by a return to launch activity and bullish sentiment around the company’s competitive positioning in the small-launch segment. Rocket Lab successfully completed its seventh mission of the year, a milestone that may have reinforced confidence in its ability to scale operations and secure government and commercial contracts. SoFi Technologies (NASDAQ: SOFI) rose 40.7% as investors responded positively to continued growth in its lending and financial services business. While some of the move may reflect short covering, improved guidance and higher visibility into profitability targets appeared to support the rally, positioning SOFI as a standout within the fintech space during the Period.

Top BUZZ Index Contributors: June 12, 2025 – July 10, 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 HIMS and UNH among declining stocks in the BUZZ Index

Shares of Hims & Hers Health (NASDAQ: HIMS) declined approximately 12% during the Period, primarily driven by the sudden termination of its partnership with Novo Nordisk. Novo alleged that Hims was improperly marketing and distributing compounded versions of Wegovy, which Hims denies. The development triggered a sharp selloff in late June and was followed by investor lawsuits alleging misleading disclosures. While some investors view the decline as overdone given the company’s broader telehealth momentum, concerns around regulatory scrutiny and brand reputation placed meaningful pressure on the stock. UnitedHealth Group (NYSE: UNH) fell 6.0% during the Period, as continued headwinds in its Medicare Advantage business weighed on investor sentiment. Elevated medical costs, management turnover, and an ongoing Department of Justice investigation into billing practices have challenged near-term visibility. While the company’s diversified platform may support a longer-term recovery, recent performance reflects growing concern about margin compression and the potential for further downside revisions.

Bottom BUZZ Index Contributors: June 12, 2025 – July 10, 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 July 2025 Rebalance Highlights

eVTOL Sector

The eVTOL sector has gained renewed momentum this year, drawing investor interest back to several names that went public through SPAC mergers during the 2021 wave. Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR), two of the more prominent entrants from that period, saw their shares decline sharply in 2022 alongside broader market weakness. Both stocks bottomed in December 2022, with JOBY trading at $3.35 and Archer at $1.80. Since then, performance has been strong. Joby closed the Period at $12.33, while Archer finished at $10.78. Operational milestones may have supported the rally. Both companies have secured partnerships with major airports, conducted successful test flights, and are moving closer to the commercial rollout of air taxi services. While the long-term adoption of eVTOL remains uncertain, investor sentiment has clearly improved. Joby returns to the BUZZ Index this month at a weight of 0.48%, while Archer makes its first appearance, entering with a weight of 1.77%.

AI-Related Stocks

AI has undeniably transformed the global tech landscape, building on decades of hardware and software innovation to enable a new wave of intelligent applications. As adoption accelerates, a growing number of new companies are being formed to support the expanding infrastructure needs, ranging from energy and storage to data transmission. One example is Nebius Group (NASDAQ: NBIS), which aims to provide a comprehensive AI pipeline to a broad range of users. Although the company originally IPO’d in 2011, trading in its shares was suspended in 2022 due to its relationships with Russian entities following the invasion of Ukraine. Its AI business was subsequently spun out, and the stock resumed trading in October 2024. At the same time, AI is being integrated into specialized use cases across a wide range of industries. One notable example is healthcare, where AI helps reduce human error in diagnostics and data analysis. Tempus AI (NASDAQ: TEM) has become a recognized name in this space. Following its IPO in May 2024, the stock quickly gained traction among online investors. Over the past two years, it has traded in a volatile range between $30 and $90, though sentiment has continued to strengthen in recent months. This month, both NBIS and TEM make their first appearances in the BUZZ Index, with weights of 1.73% and 0.41%, respectively.