During the momentum bloodbath that occurred late in the first quarter and well into the current quarter, the Global X Social Media Index ETF (NasdaqGM: SOCL) was one of the most egregious offenders.
Dragged lower by a plethora of offenders, including China’s Tencent Holdings, LinkedIn (NYSE: LNKD), Yelp (NYSE: YELP) and Twitter (NYSE: TWTR), experienced a March peak to May trough decline of 28%, enough to easily put the ETF in bear market territory. [Social Media ETF Nears Bear Market]
So brutal has the decline been in shares of Twitter that the stock has gone from flirting with being atop-five holding in SOCL to comfortably being a top-10 holding to now ranking as merely the ETF’s thirteenth-largest position at just 3.35%. That is barely more than a third of the 9.7% assigned to LinkedIn, a stock that has shed 21% in the past 90 days.
In the essence of fairness, noteworthy is the fact that SOCL has notched an impressive over the past few weeks. Since May 7th, the ETF is up almost 9.4%. Some of the ETF’s biggest downside culprits are trying to help the fund regain its footing. [Social Media ETF Looks for Lost Magic]
For example, Facebook (NasdaqGS: FB) and LinkedIn have both posted double-digit gains since May 7th. Even with Wednesday’s 2% decline, Yandex (NasdaqGS: YNDX), the Google (NasdaqGS: GOOG) of Russia, is up 18% over that time. Those stocks combine for over a quarter of SOCL’s weight.
Yelp, Pandora (NYSE: P) and Groupon (NasdaqGS: GRPN), a combined 13.3% of SOCL’s weight, are up an average of 17% since May 7th.