The return of large-scale volatility to GameStop Corp. shares has dragged investors of a big retail exchange-traded fund along for the ride once again.
Shares of State Street’s rode a wave of gains from GameStop, the fund’s biggest holding, up more than 4% at one point during Thursday’s trading session only to give it all up by the closing bell. GameStop shares initially doubled Thursday before investors appeared to reverse course, paring the videogame retailer’s gain down to 19%.
The ETF, which goes by the ticker XRT, ended up falling 3.1%.
It is the latest move for a fund that has found itself closely tied to the GameStop saga. The ETF was up as much as 42% on Jan. 27 after GameStop shares soared 135% that day alone. The next day, XRT tumbled nearly 10% as GameStop’s rally relented.
The fund ended up losing $506 million in assets, representing three-quarters of its total assets at the time. Redemptions were driven in part by wide discounts between the ETF’s share price and net asset value and a desire to get a hold of GameStop shares held by the fund, traders said.