Investors may or may not “like” this. The first ever social media ETF has hit the market.
The Global X Social Media Index ETF (NasdaqGM: SOCL) is the first ETF globally to focus on social media companies. The ETF also expands the definition of social media to include companies providing file sharing and other web-based media applications.
The Global X Social Media Index ETF tracks the Solactive Social Media Index, which is designed to reflect the equity performance of companies involved in the social media industry. As of November 11, 2011, the Underlying Index’s three largest stocks were DeNA Co., Sina Corp. and Netease.com Inc. International country exposure as of November 11, 2011 includes: China [36.28%], US [26.22%], Japan [19.95%], Russia [9.55%], Germany [2.28%], and other [5.65%].
“SOCL can provide an efficient way to tap into this global, dynamic sector,” said Bruno del Ama, chief executive officer of Global X Funds. “As the industry continues to expand through IPOs, the index will capture these new companies shortly after their public debut, providing a relatively cost effective way to gain exposure to the social media industry.”
A recent Pew Research Center survey states that in 2011 approximately 65% of adult internet users said that they use a social networking site, which is nearly double the percentage that reported social network usage in 2008.
Neilsen reported early this year that an increase in mobile phone usage has further propelled social media, with nearly 40% of social media users accessing such content directly from their mobile phones.
Global X Funds is a New York-based provider of exchange-traded funds with $1.4 billion in managed assets and over 100,000 investors from more than 100 countries as of October 28, 2011.