What’s the Buzz Behind the Deadlift ETF?

A few years ago, we discussed the Becky ETF, a fictional fund that made waves online by suggesting it could generate impressive returns of over 1,000%. For those unfamiliar, the Becky ETF was based on the hypothetical S&P Becky 10 Index (now phased out), which was a curated list of companies designed to capture the spending habits of a specific demographic—the American female.

This index included 10 companies that epitomized the core American female lifestyle, predominantly offering premium goods and services to affluent and upper-middle-class women. The companies in this index included Adobe Inc., Apple Inc., Chipotle Mexican Grill, Etsy, Facebook Inc., Lululemon Athletica Inc., Netflix, Pinterest, Peloton, and Shopify.

Move over, Becky ETF. It’s time for the Deadlift ETF

Fintwit and Reddit strikes back this year with the introduction of the Deadlift ETF, a fictional ETF that's quickly gaining traction on X and Reddit finance communities (more than 4 million views on X alone!).

This unique ETF features an interesting twist: its holdings are based on the physical fitness of company CEOs. The strategy includes an equally weighted portfolio of tech giants like Meta, Amazon, and Microsoft, alongside financial powerhouses such as Goldman Sachs and BlackRock.

According to the ETF's creator, X user @levelsio, the idea is to invest in companies led by CEOs who are known for hitting the gym or practicing fight sports. While this might seem unconventional, the rationale behind it echoes a growing body of research suggesting that physical fitness can correlate with better decision-making and leadership skills.

What’s also intriguing is that the Deadlift ETF has consistently outperformed Alphabet (Google’s parent company) in hypothetical scenarios. X user @levelsio, with a touch of humor, suggests that Alphabet’s performance might improve if Sundar Pichai swapped his strategy sessions for deadlifts.

Other company CEOs, like Coinbase’s Brian Armstrong and Airbnb’s Brian Chesky, joined the thread to highlight that they deadlift too, bluntly asking for inclusion in the Deadlift strategy.

Do We Need a Deadlift ETF?

While it’s tempting to imagine a direct correlation between a CEO’s physical fitness and their company’s financial success, the reality is far more complex. Economic factors, geopolitical events, market trends, and a company’s underlying financials are much more significant determinants of an ETF’s success. So, before getting overly excited and diving into a buying spree, it’s crucial to consider these broader factors.

Remember, this ETF is purely fictional. However, for the sake of continuing the fun, let’s imagine they were about to launch one. What ticker would you go with? LIFT? DLFT? ARND (Arnold)? DEAD?