Fans of Twitter (NYSE: TWTR), social media stocks, initial public offerings and the exchange traded funds that hold social media shares and IPOs could be getting excited in anticipation of Twitter’s ETF debut.
After the close of U.S. markets Wednesday, Twitter will be added to the underlying indices of the Renaissance IPO ETF (NYSEArca: IPO), itself newly listed, and the Global X Social Media Index ETF (NasdaqGS: SOCL). [ETFs Confirm Addition of Twitter]
The issuers of both ETFs confirmed last week that will Twitter will be added to their funds after the close of U.S. markets today, or the end of Twitter’s fifth day as a public company. SOCL also added Facebook (NasdaqGM: FB) five days after its May 2012 IPO. [Not Much of a Twitter Bounce for ETFs]
Global X did not confirm at what weight Twitter will enter SOCL, but it would not be surprising to see the stock immediately be a top-10 holding in the ETF. After all, the combine market value of SOCL top-10 holdings Pandora (NYSE: P), GRPN (NasdaqGM: GRPN), Yelp (NYSE: YELP) and Zynga (NasdaqGM: ZNGA) is less than Twitter’s current market value.