Facebook Via ETFs

If stocks could sport emotions, one that would be going stir crazy with the market closed the past days is Facebook
. Yes, the largest social media company is still down 42.3 percent since its May initial public offering and yes, plenty of investors remain cautious on the name. In other words, some left Facebook for dead not long after it went public. On the other hand, the shares surged 15.5 percent last week as the S&P 500 and the Nasdaq tumbled. Hence why those that are long the stock are eagerly the return of normal market action on Wednesday. The cautionary tale here is that one week does not necessarily make a trend. However, one week can help start a new trend and if last week says anything about Facebook, it might just be that some investors see value at current levels. Perhaps there is value. Morningstar says
fair value for the stock is $32
. It closed below $22 on Friday. Even if the darkest clouds hanging over Facebook have passed, conservative investors may opt to gain exposure to the stock through ETFs rather than direct ownership of the shares. These are the best ETF avenues for Facebook exposure.
Global X Social Media Index ETF SOCL
The $13.5 million Global X Social Media Index ETF is still the only ETF devoted exclusively to the social media space. Now almost a year old, SOCL is about far more than Facebook. The stock is the ETF's fifth-largest holding with a weight of 6.2 percent, but that is well behind the almost 13 percent allocation given to LinkedIn
and not much more than the weights garnered by search engine firms Yandex
and Google
. There have been times when SOCL and Facebook have not performed inline with each other, but the perception by some investors is that the
ETF and the stock are joined at the hip
. SOCL is the answer to the trivia question "What was the first ETF to hold Facebook?" However, SOCL is not the largest ETF with Facebook exposure. That honor goes to the...
First Trust Dow Jones Internet Index Fund FDN
Though the First Trust Dow Jones Internet Index Fund did not add Facebook as quickly as SOCL did, it was easy to see FDN would be a likely home for the social media company at some point. FDN is the king of the Internet ETF space with over $488 million in AUM. Facebook is the fund's seventh-largest holding with a weight of 3.63 percent as of October 26. FDN has a larger weight to Facebook than it does LinkedIn and Netflix
, among others. While FDN is the largest ETF with decent Facebook exposure (there are large ETFs with scant exposure to the stock), it is not the ETF with the largest weight to the stock. The answer to that trivia question is the...
First Trust US IPO Index Fund FPX
The First Trust US IPO Index Fund's name implies it is an IPO ETF, but it tracks an index that "is a rules based value-weighted index measuring the average performance of U.S. IPOs during the first 1000 trading days,"
according to First Trust
. What that means is not all of FPX 100 holdings are new. For example, top holdings such as Visa
, General Motors
and Dr. Pepper Snapple Group
are well removed from their IPOs. FPX did make room for Facebook at last rebalancing. Now the stock is the ETF's second-largest holding with a weight of almost 8.4 percent. FPX rebalances quarterly and assuming the last rebalance occurred in late September, that is a case of good timing. Facebook is up 6.4 percent since September 27. For more on Facebook and ETFs, click

Posted In: Long IdeasNewsSector ETFsBroad U.S. Equity ETFsShort IdeasSpecialty ETFsNew ETFsIntraday UpdateAfter-Hours CenterMarketsTrading IdeasETFs

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.