Social Networks meet the financial world

Social networks are a growing reality. The growing presence of users has attracted many companies to promote themselves via social networks.

MySpace was founded in 2003 and It is considered as a pioneer in the world of social networks.
Two years later, MySpace was sold for a whopping 580 million dollars.
This shows how the market of social networking is big business.

Facebook, a new social network, comes to the fore in 2008. Over the past 3 years Facebook has created a new way to advertise through social networks, successfully targeting the ads in a very accurate way.
Facebook, for that too, has acquired an immense commercial value.
I wrote this premise to introduce you to the report of two financial funds.

Global X Funds has launched its first social media ETF two weeks ago.
This EFT is based on the progress of the Solactive Social Media Total Return Index.
The Social Media index is composed of 26 publicly-traded companies.
The best known are certainly XING AG,LINKEDIN CORP,GROUPON INC.,TENCENT HOLDINGS LTD(owner of one of the biggest Chinese social network) and GOOGLE INC .
The index faces on the world market. China and USA together exceed 50 percent of the exposure.
It is designed to adapt to the market, with changes on participation in companies.
Certainly, if Facebook or Twitter were publicly traded, both the Social Media Index and the ETF would suffer a major change.
For Facebook, the advent of a public listing appears closer. Due to SEC regulations it might have to publish a financial report public in case it reached the 500 shareholders.

The sFund, created by KPCB, also believes a lot in social networks.
It is a 250 million dollars closed fund that invests in various start-ups, operating in the world of social media.
It was launched in 2010.
This fund is also supported by large companies including Amazon, Facebook, Zynga and Google(joined last month after the public opening of Google Plus)

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