Facebook-Heavy ETF Keeps Its Friends Despite ControversyBy
Despite the growing #DeleteFacebook movement taking social media by storm, the exchange-traded fund most exposed to the suddenly controversial social network hasn’t lost any fans -- at least not yet.
The Global X Social Media ETF, known by its ticker SOCL, tracks a market-cap weighted index of social media companies. Facebook Inc. is its third largest holding, constituting 8.3 percent of the portfolio. The fund’s taken in almost $27 million in March, putting it on pace for its best month since September 2016.
“The global social media industry is much bigger than just one company and the woes of one firm have not slowed down the space’s broader growth trajectory,” said Jay Jacobs, director of research for Global X Management Co.
SOCL fell 3.6 percent over the three sessions from last Friday to Tuesday, weighed down by Facebook as well as Snap Inc. and Twitter Inc. But the fund has regained nearly a third of that loss Wednesday, as social media stocks recover.
— With assistance by Tom Lagerman