Gaining Exposure to Social Media
Global X Funds have launched their first ETF targeting the social media sector – Global X Social Media Index ETF (Nasdaq: SOCL).
I have to say this is a terrible idea; first, it’s simply trying to capitalise on a fad (and that always ends in tears).
Second, the ETF actually has very little exposure to the leaders in the social sphere – you won’t find Twitter, Facebook or any other rising star within the index – they’re still privately held.
Third, it is simply risky… the recent trend of betting on the whole market leaves you over exposed, to a highly correlated sub-sector, unless you have some well placed hedges.
