Social media firm Twitter filed plans for an initial public offering, according to various media outlets. The news was revealed Thursday after the close of U.S. markets and Benzinga has learned the Global X Social Media Index ETF (NASDAQ:SOCL) will add Twitter following the IPO.
Related: Unusual Suspect Lifts Social Media ETF.
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SOCL gained notoriety in the days leading up to and immediately following Facebook's (NASDAQ:FB) bungled 2012 IPO because the ETF was the first to add Mark Zuckerberg's company to its lineup. SOCL tracks the Solactive Social Media Index, which allowed Facebook to be added to SOCL five days after the IPO.
There is not yet confirmation regarding exactly when Twitter will find its way onto SOCL's roster.
SOCL's reputation for being the "Facebook ETF" hampered the fund as shares of the social media struggled out of the gate. However, Facebook's resurgence has predictably benefited SOCL. The ETF is up 31.5 percent in just the past 90 days and has accumulated $10.8 million of its $23.7 million in assets since the start of August.
Twitter clearly has a high profile and brand recognition, as did Facebook at the time of its IPO, but investors should note Facebook is not the only marquee Internet name in SOCL's lineup.
Sina (NASDAQ:SINA), LinkedIn (NYSE:LNKD), Groupon (NASDAQ:GRPN) and Pandora (NYSE:P) combine for roughly a third of the ETF's weight.
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