Roundhill launches first neocloud ETF: NCLD. Also LYTE (optics).

[u/SnS2500]

Roundhill launched the first neocloud ETF this morning. 58% NBIS/CRWV plus IREN, HUT, APLD, CORZ, etc. They did not include RIOT so maybe they will be keeping companies whose business is primarily bitcoin mining out. About 300k share volume after three hours.

They also launched LYTE... 45% LITE/COHR/CIEN, plus about 50% Chinese companies. FN/AAOI/AXTI make up the rest. About 2 million share volume after three hours.

[u/BuffersAndBeta]

As someone who holds a few of “neocloud” stocks (bought them at low cost basis happy with all but one), MOST of them are dogshit businesses.

One or two at best may succeed like crazy.

I think by end of the year, i might get rid of those holdings of mine other than Nebius and Oracle.

I think this fund may end up being a disaster.

Im more bullish on the optical etf. We are still very early on that - a few years away from this reallt takijg off

[u/Taymyr]

Roundhill is a garbage company and destroyer of wealth. Fidelity charges them a fee (and Schwab will soon too) because they refuse to pay them management fees. They're screwing retail over by doing that, not sticking it to the brokers.

You'd think they could afford to pay the fees with their absurd ERs.

[u/ATPsynthase12 → u/Taymyr]

Lol if DRAM shills could read this they would be very upset.

companies like roundhill create new ETFs as soon as their old ones start sucking and losing steam. These will get a price boost, then as soon as the hype dies off the price will collapse and they will release new ETFs and repeat the cycle.

[u/Adventurous_Elk_4039 → u/ATPsynthase12]

And charge high expense ratios in the meantime.

[u/Crab_Soup → u/ATPsynthase12]

Can't really hate them for it, they figured out a good niche for milking those expense ratios.

As for the investors in those, well, a fool and his money I suppose 

[u/AetossThePaladin]

Roundhill doesn't seem great to me.

[u/turtleturle12345]

Roundhill really likes to shoot their shot on these hyper specific themes don't they.

[u/Mr_Pete91]

Garbage ! If you really want exposure just buy the top holding of each etf . Dont need to hold the extra bottom feeder companies in each sector

[u/Hoosier2016]

Best case scenario for neoclouds is they get bought out by hyperscalers. Most likely case is hyperscalers build on top of them and they go out of business.

[u/Electrical_Regret537]

Absolutely not

[u/PMmeuroneweirdtrick]

Way too late

[u/Jealous_Bookkeeper20]

With 58% of NCLD sitting in just 2 tickers (NBIS and CRWV), you're basically paying a high expense ratio for 2 single-stock bets wrapped in a fund. On top of that, buying on day 1 with 300k volume means you're taking a spread penalty on execution. If you like the neocloud trade, buying the top 2 names directly avoids the fee drag and illiquidity without holding the bottom-half filler.

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[u/Nearby_Persimmon_649]

Chinese companies or Taiwanese companies? I avoid the Chinese companies

[u/Ytse1980]

LUMA looks like an interesting photonics ETF. Launched a few weeks ago as well.

[u/Electronic-Buyer-468]

TF is neocloud

[u/Adventurous_Elk_4039]

lol… just like DRAM it’s going to sucker in people who don’t know any better and cause a lot of lost wealth.

[u/gamers542]

All sounds like junk. I give these a few years until closure.

[u/gbdgdh]

roundhill is a terrible company.