Market Prophit a provider of real-time stock market sentiment analysis of social media conversations has launched a social media sentiment smart beta index.
The index will be calculated by S&P Dow Jones Indices based on their corporate actions data and Market Prophit's proprietary sentiment data. The index, which will be both real time as well as have end of day historical values, will be available on the Bloomberg Terminal under the ticker symbols CROWD, CROWDTR, and CROWDNTR (index price return, index total return, and index net total return) respectively.
"There has been an explosion of market-moving chatter in social media and Market Prophit has been providing information on social-sentiment to investors both through our platform as well as our API. Now the wisdom of these crowd-sourced opinions can be made available to investors through ETF sponsors, financial institutions, and other third party providers. Our new index reflects the real-time pulse of the market," says Igor Gonta, CEO of Market Prophit.
The index is comprised of the 25 most mentioned companies in social media chatter currently representing over 3.5 T in market cap, and is rebalanced based on the sentiment of that chatter as computed by Market Prophit's proprietary Big Data Analytics engine.
The smart beta ETF market is expanding quickly with investors looking for alternatives to passive strategies to express their viewpoints. Sentiment is one of the components that can drive stock market prices, both in the short and long-term, and the market has flagged an interest in the ability to isolate the sentiment-only component of that price action. Through this new smart beta index, investors will be able to identify this crucial component.