The Facebook IPO on May 18th, 2012 was chaotic, to say the least. Between the Nasdaq failing to control the flood of trades that came in at the opening bell and the initial over pricing of the IPO itself, the mess of that day set a poor tone for the social networking firm’s future as a public company. A year later, the Nasdaq has been fined by the SEC for its poor handling of the situation and Facebook has pulled itself out of a hole. With the company’s share price breaking the $36 IPO ceiling, investors are looking for ways to invest in this recovering stock .

A Long Road Since IPO

Facebook is just one of just six large tech firms that watched its stock prices plummet after the first few days of trading. As seen below, the social media giant has spent the last year floating in the $20 region rather than $30 region, picking up a bit at the beginning of 2013; however, after Facebook announced earnings in the end of July, the stock has made a full recovery from the first year slump is currently above IPO .

While this outstanding earnings season and recovery has built a renewed sense of investor euphoria around the firm, the bigger challenge Facebook now faces is keeping the price up. This impressive recovery will mean very little in the long run if the company’s earnings results were a one-time phenomenon.

Click To Enlarge

 

ETFs With A Stake In Facebook

Below we check out three ETFs that have everything to gain from Facebook’s market recovery and continuing health :

  • Social Media Index ETF : As the premiere social media ETF, this fund has jumped into the growing business of networking, file sharing, and other web-based applications. With less than 30 total holdings, Facebook makes up 9% of the fund along with SINA Corporation and LinkedIn.
  • NASDAQ Internet Portfolio : By tracking the performance of the largest and most liquid U.S. internet-related companies, PNQI has seen a 160% return since starting up in 2008. Besides a large stake in Facebook, the ETF also holds major players like Google, Amazon and eBay .
  • IPOX-100 Index Fund : One of the best returning ETFs during the earnings season, FPX is a modified value-weighted fund built to measure the performance of the top 100 companies by market cap in the IPOX Global Composite Index; Facebook makes up 7% of the total holdings.

Follow me on Twitter @lynpaintzall

Disclosure: No positions at time of writing.

Related Articles
  1. Chart Advisor

    Watch This ETF For Signs Of A Reversal (BCX)

    Trying to determine if the commodity markets are ready for a bounce? Take a look at the analysis of this ETF to find out if now is the time to buy.
  2. Mutual Funds & ETFs

    ETFs Can Be Safe Investments, If Used Correctly

    Learn about how ETFs can be a safe investment option if you know which funds to choose, including the basics of both indexed and leveraged ETFs.
  3. Mutual Funds & ETFs

    The Top 5 Large Cap Core ETFs for 2016 (VUG, SPLV)

    Look out for these five ETFs in 2016, and learn why investors should closely watch how the Federal Reserve moves heading into the new year.
  4. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  5. Investing Basics

    Building My Portfolio with BlackRock ETFs and Mutual Funds (ITOT, IXUS)

    Find out how to construct the ideal investment portfolio utilizing BlackRock's tools, resources and its popular low-cost exchange-traded funds (ETFs).
  6. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  7. Budgeting

    Plated Review, Is It Worth It?

    Take a closer look at the ready-to-cook meal service, Plated, and learn how the company can help you take the hassle out of home cooking.
  8. Investing News

    How China's Economy is Now Like America's

    China's economy could take the global economy down with it; why that might be good news in the grand scheme.
  9. Investing News

    A 2016 Outlook: What January 2009 Can Teach Us

    January 2009 and January 2016 were similar from an investment standpoint, but from a forward-looking perspective, they were very different.
  10. Chart Advisor

    These 3 ETFs Suggest Commodities Are Headed Lower (COMT,CCX,DBC)

    The charts of these three exchange traded funds suggest that commodities are stuck in a downtrend and it doesn't look like it will reverse any time soon.
RELATED FAQS
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center