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After the closing bell on Wednesday, Facebook (FB - Free Report) reported robust second-quarter 2017 results smashing our top and bottom line estimates on its booming mobile advertising business. In fact, the company’s advertising revenue grew at more than twice the rate of its huge rival Alphabet (GOOGL - Free Report) . Additionally, the social media giant lowered its expense projection.

All these have eroded concerns over slower growth and higher expenses, adding bullishness to the company’s growth prospects. As such, the stock jumped as much as 4.7% to fresh highs in aftermarket hours (read: Tech ETFs on Fire as Q2 Earnings Season Heats Up).

Facebook Solid Q2 Results

Adjusted earnings per share came in at $1.32, crushing the Zacks Consensus Estimate by 19 cents and increasing 69% from the year-ago earnings. Revenues soared 45% year over year to $9.32 billion and edged past our estimate of $9.19 billion. Growing advertising revenue is the major reason for the robust performance.

Advertising revenues grew 47% year over year to $9.16 billion as mobile advertising has been soaring. Notably, mobile advertising revenues accounted for 87% of total advertising revenue, up from 84% in the year-ago quarter. The upward trend will likely continue as Facebook is expected to garner about $36.29 billion in global ad revenue this year, up 35% from a year earlier, according to eMarketer. The company will continue to reap the benefits of a big push into video both on Facebook itself and on Instagram. It is the world's No. 2 digital ad publisher behind Alphabet (read: ETFs in Focus Post Alphabet's Q2 Earnings).

Daily active users grew 17% year over year to 1.32 billion while monthly active users grew 17% year over year to 2.01 billion. The company now expects expenses to increase 40-45% this year, less than previous forecast of 40-45%.

Further, the world's biggest online social network is planning to launch new types of advertising features, such as ads that play in the middle of videos or appear on Facebook's Messenger app, and building more data centers to handle the surge in video traffic on its websites. All these efforts will add to growth.

Currently, Facebook has a Zacks Rank #2 (Buy) with a VGM Style Score of B and a solid Zacks Industry Rank in the top 44%. Additionally, the company’s revenue and earnings are expected to grow 34.87% and 39.94%, respectively, this year, much better than the industry average growth. All these suggest that Facebook is primed for more growth in the coming months.

ETFs in Focus

Given this, ETF investors are seeking to bet on this networking giant. For them, we have presented six tech ETFs that have a larger allocation to Facebook and could see a surge in the days ahead (see: all the Technology ETFs here).

Global X Social Media Index ETF (SOCL - Free Report)

This is the pure play ETF in the global social media space and has amassed $140.8 million in its asset base. The ETF charges 0.65% in annual fees, and sees moderate trading volumes of roughly 66,000 shares a day. The product tracks the Solactive Social Media Total Return Index, holding 31 securities in the basket. Of these firms, Facebook takes the second spot, making up roughly 10.2% of assets. In terms of country exposure, U.S. firms take half of the portfolio, closely followed by China (31%), Germany (6%) and Russia (6%). The fund has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a High risk outlook (read: Social Media ETF Hits New 52-Week High).

AdvisorShares New Tech and Media ETF (FNG - Free Report)

This is an actively managed ETF designed to invest in companies that are driving economic growth in the modern era, and can adapt to changing leadership by maintaining the ability to invest in the next generation of technology and media companies leading the equity markets. It seeks to provide a similar return stream to the performance of technology and media equity leaders as characterized by the FANG stocks acronym. This approach results in a basket of 29 stocks with Facebook on the top at 8.8% allocation. FNG has newly debuted in the space this month having amassed $17.09 million in its asset base and comes with a high expense ratio of 0.85% (read: Is the New FANG-Themed ETF Well Timed?)

iShares Dow Jones US Technology ETF (IYW - Free Report)

This ETF tracks the Dow Jones US Technology Index, giving investors exposure to 136 technology stocks. The fund has AUM of $3.7 billion and charges 44 bps in fees and expenses. Volume is good as it exchanges nearly 223,000 shares in hand a day. Facebook occupies the third position in the basket with 8.5% of assets. More than half of the portfolio is allocated to software and services while technology hardware and equipment accounts for 27.2% share. The fund has a Zacks ETF Rank of 1 with a Medium risk outlook.

First Trust Dow Jones Internet Index Fund (FDN - Free Report)

This is one of the most popular and liquid ETFs in the broad technology space with AUM of $4.7 billion and average daily volume of around 345,000 shares. The fund follows the Dow Jones Internet Composite Index and holds 42 stocks in its basket. Expense ratio comes in at 0.54%. Facebook occupies the top position in the basket with 8.4% of assets. While information technology makes up for a bigger chunk of 68.5% share, consumer discretionary accounts for 20.2% of assets. The product has a Zacks ETF Rank of 2 or ‘Buy’ rating with a High risk outlook.

PowerShares Nasdaq Internet Portfolio (PNQI - Free Report)

This fund follows the Nasdaq Internet Index, giving investors exposure to the broad internet industry. It holds about 88 stocks in its basket with AUM of $418.4 million while charging 60 bps in fees per year. The product trades in a light volume of around 33,000 shares a day. Facebook takes the second spot with an 8.6% allocation. In terms of industrial exposure, internet software and services makes up for 54.2% share in the basket, followed by internet retail (39.7%). PNQI has a Zacks ETF Rank of 2 with a High risk outlook.

Technology Select Sector SPDR Fund (XLK - Free Report)

This most popular technology ETF follows the Technology Select Sector Index and has $17.1 billion in AUM. The fund charges 14 bps in fees per year from investors and trades in heavy volume of around 9.7 million shares a day on average. It holds about 74 securities in its basket with Facebook occupying the third position at 7.3%. In terms of industrial exposure, the fund is widely spread across software, internet software & services, hardware storage & peripherals, IT services, and semiconductors that make up for a double-digit allocation each. It has a Zacks ETF Rank of 2 with a Medium risk outlook.

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