Facebook Finally Joins QQQ’s Index

December 12, 2012

About eight months after its IPO, Facebook joins the Nasdaq-100 Index and becomes part of Q's.


Facebook today joined the Nasdaq-100 Index and is now eligible to become part of ETFs such as the $30 billion PowerShares QQQ Trust (NasdaqGM: QQQ), an important step in a process ETF investors have been closely watching.

Indeed, QQQ, which replicates the Nasdaq benchmark, already bought more than 11.14 million shares of the social media company, which now represents just over 1 percent of the fund’s portfolio, a company spokesman told IndexUniverse.

Still, amid early trading volume of some 20 million shares, Facebook stock was edging lower, bleeding more than 1 percent in early trade to hover the $27.60-a-share mark. PowerShares' QQQ was largely flat early Wednesday.

Facebook is replacing Infosys, as the India-based consulting and technology firm transfers its listing to the New York Stock Exchange. Infosys’ departure has opened the way for Facebook, the $30 billion social media giant that first went public in May, to join a host of indexes and, ultimately, a number of exchange-traded funds as well.

The company will also join the Nasdaq-100 Equal Weighted Index and the Nasdaq-100 Technology Sector Index, Nasdaq has said. It wasn't immediately clear what Facebook's respective weightings would be in the each of the indexes.

In terms of ETFs, Facebook will also become part of the $2 million Direxion Nasdaq-100 Equal Weighted Index Shares (NYSEArca: QQQE) and the $79 million First Trust Nasdaq-100 Equal Weighted ETF (NYSEArca: QQEW).

Many had hoped that after the Nasdaq OMX Group changed its “seasoning rules” in April, Facebook would be entering Nasdaq’s flagship index by September.

In September, Facebook was first added to the Nasdaq Q-50 Index—the feeder index for the Nasdaq 100.

The company is already part of a number of exchange-traded products, including the Global X Social Media Index ETF (NasdaqGM: SOCL) as well as two exchange-traded notes: the Etracs Monthly Next Generation Internet ETN (NYSEArca: EIPO) and its double-exposure sibling, the Etracs Monthly 2x Leveraged Next Generation Internet ETN (NYSEArca: EIPL).

Infosys’ American depositary shares will meanwhile begin trading on the NYSE under the ticker “INFY” on Dec. 12. The firm is also looking to list its shares in Paris and London.


Find your next ETF

Reset All