SOCL’s P/E ratio is almost 30.6 with a price-to-book ratio of 3.35. By comparison, the PowerShares QQQ (NasdaqGM: QQQ), the NASDAQ-100 tracking ETF, has a P/E below 20.

It is not just U.S. stocks that are hampering SOCL. China’s Weibo (NasdaqGS: WB) has lost 11% since its April IPO. Sina (NasdaqGS: SINA), YY (NasdaqGS: YY) and Youku Tudou (NYSE: YOKU) are down an average of 18.6% in the past month. Along with Weibo, those stocks combine for about 13% of SOCL’s weight.

This year, the primary source of technology strength has come via old line companies such as Microsoft (NasdaqGS: MSFT) and Cisco (NasdaqGS: CSCO). Although those stocks, along with Qualcomm (NasdaqGS: QCOM) and Intel (NasdaqGS: INTC) are top-10 holdings in QQQ, that has not been enough to buffer the Nasdaq from declines in biotech, consumer discretionary and social medial stocks. [A Tech ETF for Grandad]

Global X Social Media Index ETF

Tom Lydon’s clients own shares of Facebook, Microsoft, Cisco and QQQ.