Facebook's shares rose Wednesday nearly 20 percent, and the move
that stemmed from success the social media company was having in
expanding its presence on mobile devices was pulling up a handful
of exchange-traded products as well.
At least three ETFs allocate 2 percent or more of their
portfolios to Facebook, with the Etracs Next General Internet ETN
(NYSEArca:EIPO) leading the pack with a 10.68 percent allocation.
Another ETP with a sizable Facebook position is the Global X Social
Media Index ETF (NYSEArca:SOCL), with a 5.7 percent weighting.
Exposure to Facebook was enough to push SOCL's price up 2.3
percent, as the company Mark Zuckerberg founded was on its way to
its largest one-day gain since it went public in May. The spike
came after it reported better-than-expected mobile advertising
sales numbers. EIPO also followed the upward momentum throughout
Wednesday's session, but turned lower near the end of the day to
close down 1.5 percent.
By now, SOCL is no stranger to wide price swings, given that
Facebook-its largest holding-has had anything but a smooth ride
since it came to market. In the past month, Facebook stock has
gained more than 13 percent, but the company's shares still remain
more than 37 percent off their price since the initial public
Since SOCL added Facebook to its portfolio on May 24, the fund
has lost some 6.8 percent of its value, trading with choppiness
along the way. Wednesday's price action-if also part of the broader
volatility-was positive for ETF, which had $13.25 million in
assets, according to data compiled by IndexUniverse.
The upward momentum in the stock was also boosting other funds,
such as the all-cap equities Elements Morningstar Wide Moat Focus
ETN (NYSEArca:WMW) and the $68 million Market Vectors Wide Moat
Research ETF (NYSEArca:MOAT).
WMW allocates 5.3 percent to Facebook stock, and was up less
than 1 percent on Wednesday, while MOAT gave up most of its
early-session gains to close only 0.05 percent higher. MOAT's
allocation to Facebook is currently pegged at 4.8 percent.
To put those performances in perspective, the Dow Jones
industrial average traded only marginally higher Wednesday but
closed 0.2 percent lower.
Facebook was most recently added to the Nasdaq Q-50 Index-the
feeder index for the Nasdaq 100-in September. But the benchmark,
which is designed to track the performance of the 50 stocks that
would be next in line for inclusion in the Nasdaq 100 Index,
appears to have no ETFs attached to it.
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