Social media ETF
Of course Social Media is an industry we did not hear from some 10 years ago. Nowadays everyone is hooked on social media, talking about a steep growth sector!
Despite the gigantic social success the financial success is more moderate, to say the least. Earning money from social media activity is still the big challenge for the industry and I think it will remain a challenge for some years to come.
Compared to search engines where an advertising model is a straightforward and a logical moneymaker social media companies still have to figure how to make money on a large and enduring scale although some companies already have made considerable progress here (and others didn’t).
I myself really believes that eventually the industry will turn users into profits as the number of users is so gigantic.
Global X Social Media Index ETF
This Global X Social Media ETF is tracking the Solactive Social Media Total Return index.
Within this social media ETF you will find approximately 35 companies. You will not be surprised to learn that Facebook is leading the dance here with a 13% share. The Chinese company Tencent comes in (surprisingly!) second with a 10% share. Based upon its growth it really deserves this spot though. Number 3 is LinkedIn with a 9% share.
Geographically speaking again the United States is the largest supplier here with a 50% share. China is number 2 with a 30% share. Japan is third with a 12% share. That does not leave much room for European countries who really were asleep when social media was on the rise (it was during the same deep sleep that search engines were developed I guess).
Picking the right entry point will be your biggest challenge with this Social Media ETF. Investors have been so positive for this market sector that prices have soared immensely the last couple of years. If these companies succeed in tapping money out of users or advertisers then the sky is the limit.
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Global X Social Media Index ETF info:
ETF provider: Global X