Facebook Dragging Social Media ETF Higher

A mid-day spike in shares of Facebook (NASDAQ:FB), the largest social media company, is helping boost the one ETF where the stock has a somewhat significant presence: The Global X Social Media Index ETF (NYSE:SOCL).

Shares of Facebook are up 3.6 percent with the bulk of the gains being accrued in a heavy-volume run-up that started just after noon eastern standard time. The stock is tied for the sixth spot with Google (NASDAQ:GOOG) among SOCL's holdings. At 5.74 percent of the only social media ETF's weight, that allocation should not be large to determine the fund's fortunes in either direction.

However, as has been previously noted, SOCL's success has often been linked to Facebook's, regardless of whether the stock is the largest or tenth-largest in the ETF. SOCL added Facebook to its lineup a week after the stock went public in May.

Facebook has not been the help to SOCL that many traders had hoped it would be, but on Wednesday the ETF is surging. The fund is up almost one percent on volume that is already triple the daily average. SOCL's $14 move today is the first time since early July the fund has traded at that price. The ETF's all-time high is $16, set in February.

Moving to $16 from $14 is a large percentage move particularly for an ETF that is already up 11 percent in the past month, but SOCL's chart shows there is little in the way of resistance between current levels and the all-time high.

It must be noted that other constituents beyond Facebook are buoying SOCL's ascent today. LinkedIn (NYSE:LNKD), the fund's largest holding, and Sina (NASDAQ:SINA) are both trading higher. Google touched another all-time high earlier in the session.

Recent performance indicates Facebook's stock is improving, though from a low base of epic disappointment. Investors looking to profit from that trend may do well to to mitigate single-stock risk participate in Facebook's rebound via SOCL.

For more on Facebook and ETFs, click here.