Tech ETFs are down in early trading Monday as Facebook is under fire for criticisms that Cambridge Analytica, a data mining company, obtained information on more than 50 million of its users without permission.
According to Newsday, ” The S&P 500 index slipped 21 points, or 0.8 percent, to 2,730 as of 10:15 a.m. The Dow Jones industrial average fell 218 points, or 0.9 percent, to 24,728. The Nasdaq composite gave up 86 points, or 1.2 percent, to 7,395. The Russell 2000 index of smaller-company stocks declined 12 points, or 0.8 percent, to 1,573.”
What has been deemed “information warfare” by Justice Department special counsel Robert Mueller, Facebook has become a breeding ground for a cyber attack on democracy as companies like Cambridge Analytica hijacked personal information to target voters for the Trump campaign. Conservative legislator Damian Collins said Facebook has “consistently understated” the risk of data harvesting stating that, “It’s time for Mark Zuckerberg to stop hiding behind his Facebook page.”
Facebook believes that the mishandling of information was not their responsibility that it doesn’t constitute a “breach” – which would require the company to alert users about whether their information was taken, per U.S. Federal Trade Commission rules.In Washington, Sen. Amy Klobuchar, a Democrat from Minnesota, tweeted, Zuckerberg “needs to testify before Senate Judiciary.”
Nuala O’ Connor president and CEO of the Center for Democracy & Technology told Bloomberg, “Communications technologies have become an essential part of our daily lives, but if we are unable to have control of our data, these technologies control us. For our democracy to thrive, this cannot continue.”
Heres a look at the top 10 ETFs with the largest Facebook exposure. Data comes from Yahoo Finance at 12 p.m. eastern Time today.
ETFs with largest exposure to Facebook down
- SOCL Global X Social Media Index ETF with 8.85% weighting down 1.85%.
- IYW iShares U.S. Technology ETF with 7.82% weighting down 2.46%.
- ENTR Entrepreneur 30 Fund with 7.68% weighting down 1.55%.
- FDN First Trust Dow Jones Internet Index with a 7.28% weighting down 2.7%.
- PNQI PowerShares NASDAQ Internet Portfolio with a 6.86% weighting down 2.72%.
- XLK Technology Select Sector SPDR Fund Technology Equities with a 6.84% weighting down 2.28%.
- VGT Vanguard Information Technology ETF Technology Equities with a 6.34% weighting down 2.39%.
- FTEC Fidelity MSCI Information Technology Index ETF with a 6.33% weighting down 2.35%.
- SYG SPDR MFS Systematic Growth Equity ETF with a 6.26% weighting down 1.24%.
- IGM iShares North American Tech ETF Technology Equities with a 5.97% weighting down 2.55%.
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