Social Media ETF: File Under "Things Nobody Needs"

I like Global X, I think they’ve launched some interesting, well thought-out exchange traded products over the last few years.  But this latest lauch, a social media ETF,  is corny, foolish and totally unnecessary…

Global X, the New York-based fund provider focused largely on commodity and emerging markets, rolled out today the market’s first ETF to focus solely on social media companies, recalling First Trust’s niche Internet-linked funds.

The Global X Social Media Index ETF (NasdaqGM: SOCL) is the first portfolio allocated entirely to social media names, tracking the 28-security free-float, market-capitalization-weighted Solactive Social Media Index. It comprises companies involved with social networking, file sharing and other Web-based applications. SOCL comes with a net expense ratio of 0.65 percent.

Do we really have to pretend that social media is a business unto itself?  None of the companies that comprise the ETF are in “new businesses” or so special that they need to be in their own index vehicle.  Groupon is not a social media company – it’s in the hundred year-old coupon business.  LinkedIn is basically the yellow pages.  Zynga is a video game maker.

So lame.  And like other contrived indexes, half the components of this thing will be competing with the other half in a zero-sum game that virtually ensures it will go nowhere.  If you want tech, just buy the QQQ’s or something.

Raise your hand if you plan to invest your money in the “social media” ETF….Great, now take that hand and slap yourself across the face with it.

Source:

Index Universe

Tickers: $GRPN $LNKD $QQQ $SOCL

Tags: , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. sex toy unboxing commented on Jun 12

    sex toy unboxing

    […]just beneath, are a lot of absolutely not connected websites to ours, nonetheless, they may be certainly really worth going over[…]

  2. twisting vibrator commented on Jun 13

    twisting vibrator

    […]Here are a few of the internet sites we recommend for our visitors[…]

  3. breaking news headline commented on Jun 13

    breaking news headline

    […]Here are several of the web-sites we recommend for our visitors[…]

  4. pure kona coffees commented on Jun 13

    pure kona coffees

    […]that would be the finish of this post. Here you’ll come across some websites that we feel you’ll appreciate, just click the links over[…]

  5. فال commented on Jun 14

    فال

    Fantastic website! Is your topic custom made produced or did you obtain it from somewhere? A style like yours with a handful of easy adjustements would really make my website stand out. Make sure you permit me know where you acquired your design. Bless…

  6. purest kona coffees commented on Jun 14

    purest kona coffees

    […]here are some hyperlinks to web-sites that we link to mainly because we assume they are worth visiting[…]

  7. interracial porn commented on Jun 14

    interracial porn

    […]just beneath, are many completely not related web sites to ours, nevertheless, they’re certainly really worth going over[…]

  8. Baby Highchair commented on Jun 14

    Baby Highchair

    […]always a huge fan of linking to bloggers that I really like but really don’t get a great deal of link adore from[…]

  9. campervans campervans commented on Jun 14

    campervans campervans

    […]Sites of interest we have a link to[…]

  10. vaccinera hund commented on Jun 14

    vaccinera hund

    […]Here is an excellent Blog You may Discover Fascinating that we Encourage You[…]

  11. Private School Portland Oregon commented on Jun 15

    Private School Portland Oregon

    […]Every as soon as in a when we pick blogs that we read. Listed below would be the most recent sites that we pick […]

  12. large strap on dildo commented on Jun 16

    large strap on dildo

    […]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless seriously worth taking a appear, whoa did one particular find out about Mid East has got more problerms also […]

  13. double penetration cock rings commented on Jun 16

    double penetration cock rings

    […]we prefer to honor quite a few other web web pages around the web, even when they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  14. Best Magic Wand commented on Jun 16

    Best Magic Wand

    […]although internet sites we backlink to below are considerably not associated to ours, we really feel they are truly really worth a go as a result of, so have a look[…]

  15. Best Anal Plug commented on Jun 18

    Best Anal Plug

    […]we prefer to honor lots of other online internet sites on the internet, even when they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]