Social Media ETF Down 3% as Facebook Begins Trading
May 18th, 2012 at 1:39pm by John Spence
Global X Social Media ETF (NYSEArca: SOCL) has seen volume ramp this week in the days leading up to the historic Facebook IPO but the fund slipped 3% amid volatile trading in newly-minted Facebook shares Friday.
Facebook (NasdaqGS: FB) shares recovered Friday after falling to the offer price of $38 a share.
Facebook was trading around $41 a share in heavy action Friday afternoon, down from the opening price of $42, which was delayed at the Nasdaq. The opening share price valued Facebook at more than $100 billion.
The social media ETF fell 3% in recent action. The fund’s top holding at 11.2% of the portfolio is LinkedIn (NYSE: LNKD) – the stock was down 2% on Friday.
SOCL holding Zynga (NasdaqGS: ZNGA ) saw its shares halted on Friday following a sharp sell-off.
Zynga represents 3.9% of SOCL, which is a relatively small ETF with $18.5 million in assets. The fund charges management fees of 0.65% and holds just under 30 stocks.
Zynga shares were off 13.5% at last check.
Trading in Facebook shares was heavy on their first day with more than 300 million shares traded Friday afternoon.
Facebook won’t immediately enter the social media fund or IPO ETFs due to index inclusion rules. [Facebook: Which ETFs Will Like it?]
On Friday, traders used social media stocks such as Zynga to hedge or bet against Facebook, Reuters reported.
Global X Social Media ETF
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