So much for Federal Reserve Chair Janet Yellen’s thesis that some social media companies are overvalued.

Twitter (NYSE: TWTR) scoffed at that notion, soaring almost 28.6% during Tuesday’s after-hours session after the company said revenue more than doubled to $312.2 million while user growth surged 24%.

“The company said third quarter EBITDA would be between $40 million and $45 million on revenues between $330 million and $340 million, compared to the $323.7 million consensus. It also raised its full year revenue forecast to a range of $1.31 billion to $1.33 billion, above the $1.27 billion consensus,” reports Teresa Rivas for Barron’s.

As is often the case when marquee Internet and social media stocks report earnings, there could be a deluge of stories forecasting a big day for Twitter today and the impact on exchange traded funds. The reality is Twitter, even for all the hype and its status as an arguably controversial social media name, is only a prime time holding in the Renaissance IPO ETF (NYSEArca: IPO).

IPO debuted just a month before Twitter went public last year. Due to its indexing flexibility, Renaissance Capital fast-tracked Twitter’s entry into IPO, adding the stock just a few days after the IPO. [Twitter Joins IPO ETF]

Twitter entered IPO with a weight of 2.44%, making the stock the ETF’s tenth-largest holding. At the close of U.S. markets Tuesday, Twitter was IPO’s second-largest holding at a weight of 9.04%, just 47 basis points behind Zoetis (NYSE: ZTS).

Put simply, IPO is the closest credible option there is to a “Twitter ETF.” The Global X Social Media Index ETF (NasdaqGM: SOCL), which to its credit is up 5.4% since July 8, features Twitter as its eleventh-largest holding at a weight of 3.8%. [Social Media ETF Rebounds]

IPO’s primary rival, the First Trust US IPO Index Fund (NYSEArca: FPX), doesn’t even allocate half a percent of its weight to Twitter.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.