SOCL’s Thursday price action may have given traders a sign that LinkedIn was going to deliver blowout numbers. The ETF gained 2.8%, rising to a new all-time high on roughly 16 times the average daily volume. If there is a near-term risk to SOCL it is valuation. Like it many of its 27 holdings, SOCL sports a high P/E ratio of 30.39, nearly double that of the PowerShares QQQ (NasdaqGS: QQQ).

Global X Social Media Index ETF

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Facebook, Google and QQQ.

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