Tag Archives: sector ETF

ETF News

Social Media ETF Index Weights Facebook (FB) at 8.8%

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The Solactive Social Media Index, the index tracked by the Global X Social Media Index ETF (Nasdaq: SOCL), has allocated 8.8% of its weight to Facebook (Nasdaq: FB), according to Global X. The Global X Social Media Index ETF, the lone ETF devoted exclusively to the burgeoning social media ETF, has been widely viewed as the first ETF destination for Facebook, the largest social media company.

It was expected that the index would add Facebook following the end of the stock’s fifth trading, which was Thursday May 24, and that the change would be reflected in the ETF on the next trading day.

Global X could not confirm the weight of Facebook within SOCL, but assuming the 8.8% allocation from the index carries over to the ETF, Facebook would have been SOCL’s fourth-largest constituent on Thursday behind LinkedIn (NYSE: LNKD), China’s Tencent Holdings and Sina (Nadaq: SINA).

SOCL has lost about 5% since Facebook’s IPO on May 18, but the ETF has seen it’s assets under management surge to over $25.1 million from $16 million and its average daily volume jump to over 50,000 shares from 36,000 shares.

At the close of markets on May 24, SOCL was home to 27 stocks with other prominent names including Google (Nasdaq: GOOG), Groupon (Nasdaq: GRPN) and Yelp (NYSE: YELP).

Read more: http://www.benzinga.com/trading-ideas/long-ideas/12/05/2617744/social-media-etf-index-weights-facebook-at-8-8#ixzz1vtceHIRe
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Fidelity Snags State Street ETF Czar: Rumors Abound

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In a “if you can’t beat ’em, poach ’em” moment, mutual fund monster Fidelity Investments has apparently thrown in the towel and will finally focus on running their own actively-managed sector-specific ETFs. At least that’s the obvious conclusion being drawn by industry watchers after news of Fidelity, which still only offers one house-branded ETF, announced the hiring of former employee Tony Rochte, who left Fidelity after four years in 2000 to seek his fortunes in the wild west days of ETF pioneering.

The widely-respected Rochte spent his next six years at BlackRock’s bootcamp carrying the iShares flag, and the most recent six years as Senior MD over at State Street Global, where he helped the second largest ETF issuer become, well, the second largest ETF issuer.

Anthony Rochte

According to InvestmentNews:With Mr. Rochte’s background in ETFs and his new role running a division focused on sector investments, it seems like a no-brainer to some that Fidelity would re-launch those strategies as active ETFs.

“It would be a logical next step,” said Robert Goldsborough, an ETF analyst at Morningstar Inc. “Given that the sector funds already exist and they’re popular with advisers, it would make a tremendous amount of sense to move that competency over to ETFs.”  Duh!