Global X, a fund provider known for its alternative and niche exchange traded fund products, recently launched the first social media-based ETF.
Global X Social Media Index ETF (NasdaqGM: SOCL) tries to reflect the performance of the Solactive Social Media Index, which tracks companies engaged in the social media industry, including companies involved in social networking, file sharing and other web-based media applications. The fund has an expense ratio of 0.65%. [Social Media Valuations Running High; New ETF in the Works]
The fund’s top holdings include Tencent Holdings Inc., Sina Corp (NasdaqGS: SINA), Dena Co., Netease.com (NasdaqGS: NTES) and Gree Inc. As a result of the indexing methodology, companies that show a significant presence in the social media space but aren’t fully vested in the industry will have a limited weighting in the index.
Country allocations include China 36.92%, U.S. 26.31%, Japan 19.47%, Russia 9.50%, Germany 2.20%, India 1.95%, Taiwan 1.77%, Italy 1.03% and U.K. 0.73%.
According to a Pew Research Center survey, the number of adult users who use social networking sites has doubled in 2011 from 2008, augmented by mobile phone usage.
Along with individual users, around 84% of Fortune 100 companies are utilizing branded social media networks and almost 81% of top Asian companies are including social media channels, according to the Burson-Marstellar study.
“SOCL can provide an efficient way to tap into this global, dynamic sector,” Bruno del Ama, chief executive officer of Global X Funds, said in a press release. “As the industry continues to expand through IPOs, the index will capture these new companies shortly after their public debut, providing a relatively cost effective way to gain exposure to the social media industry.”
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Max Chen contributed to this article.