For most of Facebook's (NASDAQ:
FB
) young (and controversial) life span as a public company, the
stock's primary ETF residence has been the Global X Social Media
Index ETF (NASDAQ:
SOCL
). For better or worse, SOCL's
fortunes have often been tied to Facebook
.
The ETF added Facebook after the stock completed its fifth day
of trading. As of Wednesday, Facebook is SOCL's seventh-largest
holding with a weight of 5.58 percent. That is still the largest
weight to the social media giant of any ETF, but as was
previously expected
, Facebook is starting to find new residences in other ETFs.
On the sly, the newly minted Market Vectors Morningstar Wide
Moat Research ETF (NYSE:
MOAT
) has made room for Facebook. The stock was added to MOAT's
index, the Morningstar Wide Moat Focus Index, on September
21.
MOAT, which debuted in late April, is proving to be one of the
more successful new ETFs to debut this year and one of the
impressive hyper-focused ETFs on the market
. Since its late April debut, MOAT has hauled in almost $69
million in assets under management and risen five percent along
the way.
MOAT is home to just 20 stocks and the ETF is basically
equal-weighted. The fund's largest holding, Lowe's (NYSE:
LOW
), accounts for 5.73 percent of the ETF's weight. Facebook
receives a weight of 4.82 percent, meaning MOAT is the ETF with
the second-largest allocation to the stock after SOCL. Facebook's
weight in MOAT puts it slightly ahead of Cisco Systems (NASDAQ:
CSCO
).
Other MOAT holdings include Weight Watchers (NYSE:
WTW
), Western Union (NYSE:
WU
) and National Oilwell Varco (NYSE:
NOV
).
Morningstar considers various factors before including a stock
in MOAT's index, chief among them being a company's competitive
advantage. No, Facebook has not thrilled investors since going
public, but there is little denying the company has a wide
competitive moat.
Importantly, Morningstar's fair value price on Facebook is
$32, according to Market Vectors. That implies upside of about 35
percent from where the stock currently trades. Should that
forecast prove accurate, MOAT and SOCL shareholders will probably
be "liking" Facebook all the more.
For more on Facebook and ETFs, click
here
.
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