The social media exchange traded fund, once criticized by some as a gimmicky investment strategy, is outperforming the broader markets, with social networking sites leading the charge in the tech sector.

The Global X Social Media Index ETF (NasdaqGS: SOCL) gained 16% in July and has increased 37.8% year-to-date. In comparison, the S&P 500 Index is up 21.2% so far this year. [Yes, Really: More Good News for Social Media ETF]

The SOCL ETF includes some of the fastest-growing companies in the social media space, with only Google (NasdaqGS: GOOG) as a top component that overlaps with traditional tech sector stocks, reports Eric Balchunas for Bloomberg.

The fund has the largest exposure of any ETF to global social media stocks, with 10 top components including:

  • Facebook (NasdaqGS: FB) is 11% of SOCL. The company’s recent earnings report exceeded expectations. FB surged 55% over the past month and gained 43% year-to-date, now trading above its initial $38 IPO price.
  • Tencent Holdings is 11%. Tencent is a large internet and instant messaging firm in China. The stock is up 45% year-to-date.
  • Sina Corp (NasdaqGS: SINA) is 11%. The company is a Chinese online forum that acts like Twitter. SINA is up 50% so far this year.
  • LinkedIn Corp (NYSE: LNKD) is 9%. The site is know for its professional social networking capabilities. LNKD is up 105% year-to-date.
  • Yandex NV (NasdaqGS: YNDX) is 6%. The internet and technology firm Yandex provides search engine services in Russia. YNDX is up 57% year-to-date.
  • Pandora Media (NYSE: P) is 5%. Pandora acts as an Internet jukebox for user prescribed music channels. P has gained 108% year-to-date.
  • DeNA is 5%. The company is an e-commerce website and cellphone gaming platform. DeNA is the only top 10 holdings of SOCL that has shown a negative return this year, falling 30%.
  • Groupon (NasdaqGS: GRPN) is 5%. The company provides users with updated “deals of the day.” GRPN is up 79% year-to-date.
  • Nexon is 4%. The South Korean company is a developer and publisher of video games. The stock is up 48% year-to-date.
  • Google is 4%. Google is known for its search engine capabilities and also recently launched the Google+ social network site. GOOG is up 28% so far this year.

Additionally, SOCL includes smaller allocations toward other well-known social media stocksl ike Zynga (NasdaqGS: ZNGA), which gained 27% this year, Yelp (NasdaqGS: YELP), which surged 200% this year, and Angie’s List (NasdaqGM: ANGI), which rose 95% year-to-date.

Due to its targeted exposure, SOCL has shown a low correlation to the S&P 500. Low correlation helps diversify an investment portfolio. However, potential investors should note that the fund is still relatively small with $11 million in assets and comes with a 0.65% expense ratio.

For more information on social media stocks, visit our social media category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.