The social media exchange traded fund has been moving higher on increased trading volume in recent days on anticipation Facebook could file for an initial public offering as soon as this week.
Global X Social Media Index ETF (NasdaqGM: SOCL), the first social media-based ETF, listed in November. It tracks a benchmark of 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%.
“SOCL can provide an efficient way to tap into this global, dynamic sector,” Bruno del Ama, chief executive officer of Global X Funds, said at the fund’s launch. “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.”
Facebook, which has more than 800 million members, could file for an IPO as early as this week, The Wall Street Journal reported.
”The Facebook IPO and the rumored valuation at around $75-$100 billion is raising the spotlight on the entire social media space,” said del Ama at Global X in a Barron’s report.
“The fund started pretty slow, but volume has really picked up over the excitement about Facebook. This is a good event for social media stocks at a time when the overall market has been flat to slightly down,” he added.
The new ETF is tiny with about $1.4 million in assets. The fund’s holdings can be viewed here.
Global X Social Media Index ETF (NasdaqGM: SOCL)
