“One of the top components within this index is the Chinese internet giant Tencent Holdings. It may not be a household name, but this is a $160 Billion company that rarely makes headlines, but it does make all-time highs. In fact, this is pretty much all that this stock does. More recently, prices have been consolidating in a nice healthy sideways range since last August. This overhead supply has been very clean and Thursday morning prices broke out it what appears to be a breakaway gap higher,” according to Eagle Bay Capital founder J.C. Parets.
Tencent is SOCL’s second-largest holding behind LinkedIn at a weight of almost 12%.
Investors are displaying a willingness to embrace cyclical, higher beta fare even as the bull market in U.S. stocks ages. That coupled with new highs for the Nasdaq Composite bode well for SOCL’s near-term upside. [Internet ETF Rally Bodes Well for Bulls]
Global X Social Media Index ETF