An ETF that has fallen on hard times recently in terms of short term performance is SOCL (Global X Social Media, Expense Ratio 0.65%) , largely due to the sudden and sharp decline in FB stock before its anticipated quarterly earnings release on1/28/15.
FB holds a >10.4% weighting in the fund and is the number two ranked component, following LNKD which carries a weighting of about 11.9%. LNKD stock has also declined from recent highs this week, slicing through its 50 day MA and not seeming to be able to recover from the slump.
SOCL holds thirty other individual stocks, with rankings 3 through 10 in the fund looking as follows: 3) Tencent Holdings Ltd (>10.1%), 4) GRPN (>6.5%), 5) SINA (>5.8%), 6) GOOG L >4.9% 7) NEXON Co. Ltd ?4.8% 8) ZNGA (>4.6%) 9) YELP (>3.9%) 10) P >3.8%).
In fact, more than 67% of the portfolio resides across the top ten holdings in the index. Some of these stocks like GOOGL, GRPN, and ZNGA for example are routinely in the news headlines as this rather new “Social Media” sector has been quite active for several quarters now.
The fact that core earnings season is upon us just increases the likelihood that trading interest in SOCL may become elevated at times perhaps several months out.
For now, in spite of recent price pressure in the stocks in this space, volume has been rather tame and virtually below daily averages for at least a month now. SOCL is unique in its timing of being first (and currently only) offering in the “Social Media” sub-sector space which ultimately falls within the greater category of “Technology.”
There it currently ranks as a “middle of the pack” type fund in terms of its overall asset size of approximately $108 million. While there are no other “Social Media” specific funds to laser in on here at the moment, we can
look at other funds that have sizable weightings to say FB and LNKD for starters. FPX (FT IPOX-100, Expense Ratio 0.60%) carries a >10% weighting to FB, while FDN (FT DJ Internet, Expense Ratio 0.57%) has a >8.4% weighting. PNQI (PowerShares Nasdaq Internet, Expense Ratio 0.60%) has a >8.3% weighting to the stock, just to name a few notables.
LNKD on the other hand is owned in PBS (PowerShares Dynamic Media, Expense Ratio 0.63%) and FDN (>3.7%) to name a few.
Global X Social Media Index ETF
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