BUZZ Investing: Tariff Chaos Drive Historic Market Swings>

Following the sharp policy-driven volatility in early April, U.S. equity markets staged a robust and, to many, unexpected recovery. During the recent period between index selection dates (April 10, 2025 – May 8 ,2025, the “Period”), the S&P 500 rose 7.6% and the Nasdaq gained 9.4%, erasing earlier losses and lifting major indices back near year-to-date highs. The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index") outperformed, advancing 15.6%. In our view, the rally was fueled by a combination of easing trade concerns following the temporary suspension of most tariffs, and better-than-feared earnings results, particularly from large-cap technology and consumer-facing companies. The sharp reversal may have also triggered a mechanical bid from short covering and re-risking flows, while systematic strategies could have re-engaged as volatility subsided and momentum signals turned more constructive.

Beneath the surface, market leadership rotated. While mega-cap tech regained footing, the rally broadened into cyclicals and select high-beta areas, reflecting a sentiment rebound more than a uniform improvement in fundamentals. In our view, the pace and magnitude of the recovery may point to a market still prone to abrupt shifts in narrative, particularly as policy remains the dominant macro driver and positioning remains cautious. While recent strength has offered some reassurance, the interplay between trade developments, political headlines, and monetary policy continues to inject a high degree of uncertainty. As such, the Period highlights how sentiment-driven rallies can coexist with fragile underlying confidence, and why adaptability may remain a core requirement for navigating today’s environment.

The BUZZ Index returned 6.20% during the month of April compared to a return of -0.68% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of -4.55% and -4.92%, respectively, as of the end of April.

Shares of Hims & Hers pace BUZZ Index Gains

Hims & Hers (NYSE: HIMS) was the top contributor to BUZZ Index performance, with shares rising over 90% during the Period. The company’s Q1 earnings beat on both revenue and EBITDA, but it was the April 29 announcement of a distribution agreement with Novo Nordisk for branded Wegovy that appeared to drive the most significant upside. In our view, this deal may have reassured investors about the company’s long-term role in the competitive GLP-1 market, even as compounded semaglutide faces tighter regulatory constraints. HIMS also announced the hiring of a former Amazon Pharmacy executive as COO, which could further support its expansion ambitions. While second-quarter guidance came in slightly below consensus and questions remain around margin durability, the stock’s performance reflects investor appetite for scalable, consumer-facing healthcare platforms—particularly those with exposure to high-demand therapeutic area.

Top BUZZ Index Contributors: April 10, 2025 – May 8, 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 Lucid Group among declining stocks in the BUZZ Index

Despite broad strength in the BUZZ Index during the Period, a small group of names detracted modestly from overall performance. In aggregate, the ten lowest-contributing stocks reduced total return by just 74 basis points, with nearly two-thirds of that impact driven by two positions. Notably, five of the ten detractors each reduced index performance by just 1 basis point, reflecting either modest price moves or limited weighting within the portfolio. Overall, the limited drag from underperformers underscores the strength and breadth of this Period’s rally.

Bottom BUZZ Index Contributors: April 10, 2025 – May 8, 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 May 2025 Rebalance Highlights

UnitedHealth Group Inc.

On December 4th, 2024, UnitedHealth Group (NYSE: UNH) was thrust into the spotlight following the tragic shooting and death of then-CEO Brian Thompson. The incident brought renewed attention to mounting frustration over the company’s high claim denial rates and intensified scrutiny across the healthcare sector. UNH shares initially sold off but recovered over the following weeks. However, Q1 earnings released on April 17th fell well short of expectations, with revenue and profit misses and a weak 2025 outlook. Shares dropped over 20% on the report and continued to decline in the weeks that followed. On May 13th, UnitedHealth suspended its full-year guidance and announced the resignation of current CEO Andrew Witty, triggering another 18% decline. From early April highs, the stock has now fallen nearly 50%. Still, investor sentiment has shown signs of improvement, suggesting that many may believe the bulk of the downside risk may now be priced in. UNH returns to the BUZZ Index this month at the maximum 3% weight.

First Solar, Inc.

Equity markets have rebounded strongly following the initial turmoil sparked by President Trump’s “Liberation Day” tariff announcement, as worst-case trade fears gave way to renewed optimism. Technology stocks led the recovery, with some of the most heavily sold subsectors, particularly solar, posting the strongest gains. The Invesco Solar ETF (NYSE: TAN) has risen sharply off its lows, driven in part by a rally in First Solar (NASDAQ: FSLR), which surged after initially falling 8% following its April 29th earnings release. Favorable developments shortly thereafter helped shift sentiment. Signs of progress in U.S.-China trade talks helped ease investor concerns, and proposed revisions to the GOP’s budget reconciliation bill left solar tax credits untouched. This policy clarity represents an important support for FSLR’s long-term economics. With both regulatory clarity and policy momentum at its back, FSLR enters the BUZZ Index this month with a 0.38% weight.

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