Facebook's Effect On Tech ETFs

By Devin Riley,

Shutterstock photo

It might be easy to get caught up in the Facebook hype today. Maybe not for the reasons Mark Zuckerberg would want, though.

The price action on Facebook's initial public offering has been dismal. As I write this, the stock's bid price is hovering around $40, certainly lower than the $45 price point some analysts were calling for. It doesn't look like the IPO everyone hoped for.

The truth is, the tech sector in general looks pretty bad. Consider the "Q's":The PowerShares QQQ Trust (NasdaqGM:QQQ) is down 7.5 percent this month.

That's disappointing for the ETF analog for the broad U.S. tech sector and, if anything, it makes me question the market timing behind the world's most famous social network offering up its shares.

In fact, looking at an even closer proxy for Facebook, the Global X Social Media ETF (NYSEArca:SOCL), makes the timing look downright terrible. That ETF, which exclusively tracks publically traded social media companies, has dropped nearly 11 percent over the past month.

Don't forget to check IndexUniverse.com's ETF Data section.

Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: QQQ , SOCL , SPY

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