Twitter (NYSE: TWTR), this year’s most eagerly anticipated initial public offering, has finally commenced trading. As of this writing, shares of the social media firm are flirting with $46 after opening at $45 and over 51 million shares have changed hands.
None of that means much to the exchange traded funds that are most likely to be first to hold shares of Twitter. While the Global X Social Media Index ETF (NasdaqGS: SOCL)saw a slight bounce immediately after Twitter opened, the ETF is still trading near its lowest levels of the day. Making the loss all the more concerning is that SOCL is off 3.2% on volume that is already double the daily average.
Global X has already confirmed it will add Twitter to SOCL, though it has not said exactly when that will happen. SOCL added Facebook (NasdaqGM: FB) five days after its May 2012 IPO and there is speculation the ETF could do the same with Twitter. [What Twitter’s IPO Means for Social Media ETF]
The new Renaissance IPO ETF (NYSEArca: IPO) could also add Twitter within five days, but the market does not seem to be impressed as that new ETF is down 1.8% and has not moved much following Twitter’s open. [Twitter IPO: Not Much Love for ETFs…Yet]
The First Trust US IPO Index Fund (NYSEArca: FPX) is another ETF where Twitter should find a home. Though the IPOX-100 U.S. Index, FPX’s underlying index, does not usually add stocks in short order and can hold “new” stocks for up to 1,000 days post-IPO, the index construction provides for some exceptions for rapid additions.
Still, FPX is down 1.8% on volume that is already above the daily average. Interestingly, it is Facebook that is holding back the aforementioned ETFs today. On the day of Twitter’s debut, Mark Zuckerberg’s company is off nearly 3%.
Facebook is the largest holding in FPX and IPO, accounting for more than 10% of those ETFs. The stock is SOCL’s second-largest holding at a weigh of 9.6%.
SOCL 1-Day Chart