Global X Social Media ETF: Though Alpha In The Past, Too Many Risks Going Forward

Feb. 11, 2022 4:39 AM ETGlobal X Social Media ETF (SOCL)SOCL
Vasily Zyryanov
2.13K Followers

Summary

  • SOCL is a fairly concentrated thematic ETF investing in the social media universe from light-weight players to established titans across emerging and developed markets, mostly from the U.S. and China.
  • SOCL's returns were nothing short of spectacular amid the tech bull market of the 2010s, supercharged by the pandemic-related tailwinds in 2020, but a tectonic shift clearly began in 2021.
  • Tech regulations, FX headwinds, and growth premia are amongst the top risks.
  • Speculative tech bulls have better options. SOCL is a Hold.
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Global X Social Media Index ETF (NASDAQ:SOCL) is a fairly concentrated thematic ETF investing in the social media universe from light-weight players to established titans across emerging and developed markets, with the U.S. tech expectedly being the area of primary

This article was written by

2.13K Followers
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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