Facebook Heading to Nasdaq 100; Will Join at Least 4 More ETFs

Shares of social media giant Facebook FB could get a lift over the next several days as fund managers and ETF sponsors acquire the stock in anticipation of it joining the Nasdaq 100 at the start of trading on Wednesday December 12, 2012. NASDAQ OMX NDAQ made the announcement after the close of U.S. markets on Tuesday. The news means Facebook is headed for the PowerShares QQQ 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 U.S.-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 FDN. Facebook will replace Indian information technology firm Infosys INFY. That stock currently accounts for 0.1 percent 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 NDXE, and the NASDAQ-100 Technology Sector Index NDXT as well. The NASDAQ-100 Technology Sector Index is the index tracked by the First Trust NASDAQ-100-Technology Sector Index Fund is 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 QQEW and the Direxion NASDAQ-100 Equal Weighted Index Shares QQQE. Currently, the ETF with largest weight to Facebook is the First Trust US IPO Index Fund FPX at almost 10 percent. The first ETF to have included Facebook in its lineup was the Global X Social Media Index ETF SOCL. For more on Facebook and ETFs, click here.