Global X Funds has launched the Global X Social Media Index ETF (SOCL), which it says is the first ETF that will globally focus on social media companies. The fund will cover companies that provide social networking, file sharing and other web-based media applications.
Global X noted that a survey by the Pew Research Center shows that this year, 65% of adult Internet users use a social networking site, nearly double the percentage in 2008. In addition, nearly 40% of all social media users access this content on their mobile phones, according to a 2011 report from Nielsen.
Nearly 84% of Fortune 100 companies are using branded social media, according to Burson-Marsteller, and nearly one-third of small businesses in the U.S. are using social media.
“SOCL can provide an efficient way to tap into this global, dynamic sector,” said Bruno del Ama, chief executive officer of Global X. “As the industry continues to expand through IPOs, the index will capture these new companies shortly after their public debut, providing a relatively cost-effective way to gain exposure to the social media industry.”
The fund tracks the Solactive Social Media Index, whose three largest stocks are social networking companies DeNa Co., Sina Corp. and Netease.com Inc.
--This story first appeared on Money Management Executive.