Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Facebook Heading to Nasdaq 100 and Will Join at Least Four More ETFs


Shares of social media giant Facebook could get a lift over the next several days.


NASDAQ OMX (NASDAQ:NDAQ) made the announcement after the close of US markets on Tuesday. The news means Facebook is headed for the PowerShares QQQ (NASDAQ:QQQ), the ETF often referred to as the "Nasdaq 100 tracking ETF."

With $30.9 billion in assets under management, QQQ is not only one of the largest US-listed ETFs of any kind, it will also be the largest ETF to be home to Facebook. Currently, the largest ETF by assets to hold shares of Facebook is the First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN).

Facebook will replace Indian information technology firm Infosys (NASDAQ:INFY). That stock currently accounts for 0.1% of QQQ's weight.

While most investors are likely to focus on Facebook's addition to QQQ because it is a large, popular ETF, it should be noted that the statement issued by NASDAQ OMX points out Facebook will join the the NASDAQ-100 Equal Weighted Index (INDEXNASDAQ:NDXE), and the NASDAQ-100 Technology Sector Index (INDEXNASDAQ:NDXT) as well.

The NASDAQ-100 Technology Sector Index is the index tracked by the First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ: QTEC). Home to 44 stocks, QTEC is not exactly small with nearly $113 million in assets.

The NASDAQ-100 Equal Weighted Index is the index tracked by the First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ:QQEW) and the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEARCA:QQQE).

Currently, the ETF with largest weight to Facebook is the First Trust US IPO Index Fund (NYSEARCA:PX) at almost 10%. The first ETF to have included Facebook in its lineup was the Global X Social Media Index ETF (NASDAQ:SOCL).

Editor's Note: This content was originally published on by The ETF Professor.

Below, find some more great ETF and market content from Benzinga:

Citigroup Plans Cut of Another 11,000 Jobs

Pandora Plummets On Guidance

Euro Hits Seven Week High As Doubts Are Eased


Benzinga Pro covers this and all market news in real time. Get your free trial here.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos