As per the details of Bloomberg, the Social Media ETF has shown a remarkable progress of a rise of 16% in the month of July and is anticipated to show a further rise of 37%. The most credit worthy security to share the acclaim for the whooping success is Face Book. Social Media ETF has become the most impressive funding vehicle out of the entire ETF specimens. SOCL has gained a $50.5 million of inflow into its basket of assets this year, an amazing amount that is, keeping in mind the total assets of approximately $68.4 million.
Of the Thirty stocks that the Benchmark holds, as on 10/15/2013 the top ten heavy weights of the fund are FACEBOOK INC-A (12.97%) and TENCENT HOLDINGS LTD (12.16%), SINA CORP US (11.67 %), LINKEDIN CORP - A(9.09%), PANDORA MEDIA INC(6.27%), YANDEX NV-A(6.16%), GROUPON INC(5.87%), DENA CO LTD(4.78%), NEXON CO. LTD.( 3.76%) and GOOGLE INC(3.76%). This sector has always scored on the high beta that it has to offer making way for the investments in social media companies. Internet penetration is now seeping into the infrastructures of all sectors. The amount of users that add on to the existing lot is seen to increase day by day. If we look into the activities involved in the technological sectors, the devices like Computers, laptops, mobile phones, latest technology smart phones and I pads etc are the gadgets that are constantly used for social media activities. The industry is at a booming phase now, and has also shown expansions related to social media company IPO. The propelling factor that has boosted the demand for the industry and investments is the use of mobile phones. The latest apps and technologies have influenced the need for these gadgets by not only the youth of the economies, but by all the age groups. Take for example China, which has a domestic market for the technological products that is increasing as the spending power of the economy rises. More over most of the financial trading and transactions are going online and as a matter of fact the purchasing trends are inclined to online facilities. Just by the click of the mouse you can manage most of your billing and purchasing transactions. Direct exposure is facilitated to the buyers and sellers and organizations can connect directly to their customers.
Tencent is one of the largest Internet and instant messaging company that has approximately 650 million users. Along with Sina, these Chinese companies's hold 34% of the total assets of the fund and play a very important role being part of the group of global social media companies.
Mobile advertising is gaining a large part of the social media pie. The recently launched products by Face book, such as Facebook Home and Instagram's video application are part of the methods used to attract advertisers. This is slowly and steadily becoming part of the selling game. The latest vehicle to join the brand wagon of technology ETFs is the Twitter IPO belonging to the group of social media company IPO.
Global X Social Media ETF [SOCL] yields as per the performance of The Solactive Social Media Index after charging the issuers an annual expense of 65 basis points. The fund offers exposure to the most influential global social media companies . Namely 49.05% of the holdings of the investments in social media companies belong to the United States, 27.97% to China 13.36% to Japan followed by Russia which possesses 8.37%of the assets of the fund.