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Should You Invest in the Global X Social Media ETF (SOCL)?
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Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Global X Social Media ETF (SOCL - Free Report) is a passively managed exchange traded fund launched on 11/14/2011.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $219.78 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Internet segment of the equity market. SOCL seeks to match the performance of the Solactive Social Media Total Return Index before fees and expenses.
The Solactive Social Media Index is designed to reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.65%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tencent Holdings Ltd accounts for about 12.46% of total assets, followed by Meta Platforms Inc and Snap Inc - A (SNAP - Free Report) .
The top 10 holdings account for about 67.19% of total assets under management.
Performance and Risk
So far this year, SOCL has lost about -28.09%, and is down about -42.90% in the last one year (as of 05/04/2022). During this past 52-week period, the fund has traded between $36.19 and $72.64.
The ETF has a beta of 0.95 and standard deviation of 31.83% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Global X Social Media ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SOCL is a reasonable option for those seeking exposure to the Technology ETFs area of the market. Investors might also want to consider some other ETF options in the space.
ARK Next Generation Internet ETF (ARKW - Free Report) tracks N/A and the First Trust Dow Jones Internet ETF (FDN - Free Report) tracks Dow Jones Internet Composite Index. ARK Next Generation Internet ETF has $1.83 billion in assets, First Trust Dow Jones Internet ETF has $5.14 billion. ARKW has an expense ratio of 0.83% and FDN charges 0.51%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Global X Social Media ETF (SOCL)?
Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Global X Social Media ETF (SOCL - Free Report) is a passively managed exchange traded fund launched on 11/14/2011.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $219.78 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Internet segment of the equity market. SOCL seeks to match the performance of the Solactive Social Media Total Return Index before fees and expenses.
The Solactive Social Media Index is designed to reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.65%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tencent Holdings Ltd accounts for about 12.46% of total assets, followed by Meta Platforms Inc and Snap Inc - A (SNAP - Free Report) .
The top 10 holdings account for about 67.19% of total assets under management.
Performance and Risk
So far this year, SOCL has lost about -28.09%, and is down about -42.90% in the last one year (as of 05/04/2022). During this past 52-week period, the fund has traded between $36.19 and $72.64.
The ETF has a beta of 0.95 and standard deviation of 31.83% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Global X Social Media ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SOCL is a reasonable option for those seeking exposure to the Technology ETFs area of the market. Investors might also want to consider some other ETF options in the space.
ARK Next Generation Internet ETF (ARKW - Free Report) tracks N/A and the First Trust Dow Jones Internet ETF (FDN - Free Report) tracks Dow Jones Internet Composite Index. ARK Next Generation Internet ETF has $1.83 billion in assets, First Trust Dow Jones Internet ETF has $5.14 billion. ARKW has an expense ratio of 0.83% and FDN charges 0.51%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.