Global X called gobbledygook before Facebook Inc (NASDAQ:FB) came on-board
Global X funds may now require its own social-media campaign. So far it has performed astoundingly well. In July alone, SOCL rose by 16% and for 2013, it’s up by 37%. This tops the 12% return for the popular XLX and the S&P 500’s 20% rise. Despite this, the ETF has only $11M in assets.
Global X was launched in the latter part of 2011. At that point it had been called the “Facebook ETF” when it added FB to its portfolio just 5 days post its stock’s IPO. This was the first ETF to hold the FB stock.
Before Global X brought FB on the portfolio board, it had been branded as just a “gimmick” by a CNN Money article. MarketWatch said that it deserved no more than a “brush-off”. There were a lot of skeptical news stories running around on various finance publications.
Today, Global X has proved that it is more than the “gimmick” that it had been branded as. It has proved that is more than a repacked version of existing tech-plays, with a snazzy name. SOCL is one of the ETF segment’s high-profile Top-10 holdings lists and almost all of its holdings do not have sheen in the mainstream tech-ETF space. But there are some that definitely shine.
The Facebook charm
For e.g.: Facebook Inc (NASDAQ:FB) whose stock has climbed 43% this year has an 11% weightage in SOCL. The company has been growing from strength to strength and has silenced all the skeptics who have undermined its ability to garner profits. Over the last one month, FB stock jumped 55% and broke though its Initial Public Offering price of $38.
SOCL has been able to prove to the market that it is more than a cutesy niche-product. And it is companies like Facebook that have lent it this credibility. Thus, Facebook Inc (NASDAQ:FB), with its own profitability-jump adds shine to everything it touches.