ETF Trends
ETF Trends

Internet stocks and sector-specific exchange traded funds have powered ahead in the tech space, with Facebook (NasdaqGS: FB) valuation topping $200 billion.

While still underperforming the broader tech sector for the year, the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and PowerShares NASDAQ Internet Portfolio (NasdaqGM: PNQI) have gained momentum. Over the past three months, FDN is up 10.3% and PNQI is 8.8% higher, whereas the Technology Select Sector SPDR (NYSEArca: XLK) has increased 6.1%.

One of the standout companies in the internet space has been the quick rise in Facebook’s market value, which exceeded $200 billion, as investors bet on the company’s ability to capitalize on the growth in mobile advertising, Bloomberg reports.

Facebook is the largest holding in FDN and PNQI at 9.0%. The company stock also makes up 3.4% of XLK.

The social media provider has experienced a 61% jump in second-quarter sales on an increase in mobile promotions, which accounted for 62% of ad sales, up from 59% over the first quarter.

“This latest rally stems from their last earnings announcement, when they reported higher demand and sales numbers for their mobile ads,” Jeffrey Sica, president of Sica Wealth Management, said in the article. “If they can continue to grow their mobile ads, they will have a sustainable demand for their stock.”

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