ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. 4 META ETFs With Buy the Dip Opportunity
News
Share

4 META ETFs With Buy the Dip Opportunity

Nick Peters-GoldenOct 28, 2022
2022-10-28

Meta Platforms Inc. (META) stock saw a huge falloff this week following a more than 50% decrease to its quarterly profits, driven by a precipitous drop to its digital advertising numbers. While many investors are questioning Meta chief executive Mark Zuckerberg’s significant investment in the metaverse, the social media firm offers a risky but intriguing opportunity to buy the dip with META ETFs.

Investors had good reason this week to be concerned about META following its loss of $3.7 billion on Reality Labs, the firm’s metaverse department. But markets, nervous about rising rates and the specter of a recession, also had the finger on the trigger to sell with the first headline earnings drop from the big tech names. Much like the China stock selloff earlier this week, emotions were part of the equation.

Reality Labs has posted some serious losses, but the division represents an investment in the future which could still pay off. META also plans to expand its data centers to support next-generation AI, for example, that could sharpen its digital advertising capabilities.

Investors should keep an eye on four META ETFs holding META at a minimum 10% weight that could rebound as the market’s take on the firm’s prospects levels out, starting with the Communication Services Select Sector SPDR Fund (XLC A-).

XLC tracks the S&P Communication Services Select Sector Index and lists META as its largest holding by weight at 16.2% as part of its large-cap growth focus. XLC charges just 10 basis points, with one-month returns beating the ETF Database category average by 4.7%.

The *Vanguard Communications Services ETF (VOX B) holds META at 11.1%, just behind Alphabet Inc.’s Class A (GOOGL) and Class C (GOOG) stocks at 22.8% combined weight. VOX tracks the MSCI US IMI 25/50 Communication Services Index, with a significant lean towards mega-cap companies which may benefit those interested in a sector rotation strategy. VOX also charges a 10 basis point fee and has seen $46 million in three month flows.

The cheapest of the four, the Fidelity MSCI Communication Services Index ETF (FCOM B), holds META at 10.3%, also second to the combined weight of GOOG and GOOGL at 27%. FCOM charges just nine basis points to track the MSCI USA IMI Communication Services 25/50 Index including several video game and communications firms. FCOM has seen $20 million in net inflows over the last three months.

Finally, investors may also want to follow the *Global X Social Media ETF (SOCL C) as well, where META is weighted at 10.2% just behind Twitter Inc., (TWTR) which will no longer be publicly held following its purchase by billionaire Tesla CEO Elon Musk. SOCL tracks the Stuttgart Solactive AG Social Media Index and charges a 65 basis point fee for concentration in a few large firms providing social networking, file sharing, and other online media tools.

For more information, please visit VettaFi.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jun 09

How Advisors Use the Small-Cap ETF 'QWST' in Portfolios

Jun 09

S&P 500: The Battle on Two Fronts

Jun 09

This Is How New Bulls Are Born

Jun 09

Main Management Market Note: June 9, 2023

Jun 09

European Carbon Allowances Up 10%: The Summer Guide

Jun 09

A Complete Comparison of Top U.S. Real Estate ETFs

Jun 09

Could Now Be a Good Time for Value ETFs?

Jun 09

Fine Tuning Your Index Exposure With Direct Indexing

Jun 09

BNDI Generates Better Returns, Yields in Core Bond Allocations

Jun 09

Issuer League: WisdomTree and Dimensional Are Up

QQQM

Invesco NASDAQ 100 ETF

VGT

Vanguard Information...

SPY

SPDR S&P 500 ETF Trust

FNGU

MicroSectors FANG+ Index 3X...

IWM

iShares Russell 2000 ETF

VUG

Vanguard Growth ETF

IYW

iShares U.S. Technology ETF

XLK

Technology Select Sector SPDR...

BOTZ

Global X Robotics &...

IVV

iShares Core S&P 500 ETF


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X