Facebook today joined the Nasdaq-100 Index and is now eligible
to become part of
such as the $30 billion PowerShares QQQ Trust (NasdaqGM:QQQ), an
important step in a process ETF investors have been closely
Indeed, QQQ, which replicates the Nasdaq benchmark, already
bought more than 11.14 million shares of the social media company,
which now represents just over 1 percent of the fund's portfolio, a
company spokesman told IndexUniverse.
Still, amid early trading volume of some 20 million shares,
Facebook stock was edging lower, bleeding more than 1 percent in
early trade to hover the $27.60-a-share mark. PowerShares' QQQ was
largely flat early Wednesday.
Facebook is replacing Infosys, as the India-based consulting and
technology firm transfers its listing to the New York Stock
Exchange. Infosys' departure has opened the way for Facebook, the
$30 billion social media giant that first went public in May, to
join a host of indexes and, ultimately, a number of exchange-traded
funds as well.
The company will also join the Nasdaq-100 Equal Weighted Index
and the Nasdaq-100 Technology Sector Index, Nasdaq has said. It
wasn't immediately clear what Facebook's respective weightings
would be in the each of the indexes.
In terms of ETFs, Facebook will also become part of the $2
million Direxion Nasdaq-100 Equal Weighted Index Shares
(NYSEArca:QQQE) and the $79 million First Trust Nasdaq-100 Equal
Weighted ETF (NYSEArca:QQEW).
Many had hoped that after the Nasdaq OMX Group changed its
"seasoning rules" in April, Facebook would be entering Nasdaq's
flagship index by September.
In September, Facebook was first added to the Nasdaq Q-50
Index-the feeder index for the Nasdaq 100.
The company is already part of a number of exchange-traded
products, including theGlobal X Social Media Index ETF
(NasdaqGM:SOCL) as well as two exchange-traded notes:the Etracs
Monthly Next Generation Internet ETN (NYSEArca:EIPO) and its
double-exposure sibling, the Etracs Monthly 2x Leveraged Next
Generation Internet ETN (NYSEArca:EIPL).
Infosys' American depositary shares will meanwhile begin trading
on the NYSE under the ticker "INFY" on Dec. 12. The firm is also
looking to list its shares in Paris and London.
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