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Stash’s Take on Social Media

Apr 28, 2016

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For this blog post, we’re featuring the insights from Stash on the Global X Social Media ETF (SOCL).

Nearly 80% of US Millennials 18­-34 don’t invest, because they find it confusing and think it’s unaffordable. Stash is on a mission to change that, with an app-­based investment advisory service that makes it easier to start saving and investing. Stash helps new investors cut through the confusion and overwhelming options they face, by curating investment themes and providing access to about 30 ETFs from leading investment managers, with nicknames that are easy to understand like “Social Media Mania”, “Copy the Experts”, and “Delicious Dividends”. Using fractional shares, Stash lets people start investing with as little as $5, and set recurring purchases of investments and/or cash deposits to grow their portfolios automatically.

Investment Profile: Social Media Mania

Warren Buffett and Peter Lynch, two of the most revered investors, famously invest in what they know. So what do you know about, more than, say ­ your parents do (Spoiler alert: You’re using it right now, and just about all the time)….? Social media! You may not be an expert when it comes to investing, but I’m guessing you’re a guru when it comes to Facebook, Google (now Alphabet), and LinkedIn. If you like the idea of investing in a group of the leading companies in social media, e-commerce, and online and mobile gaming, consider Social Media Mania on Stash.

What is this Investment All About?

The popularity of social media is staggering. Over 2.3 Billion people are now active social media users ­- that’s nearly ⅓ of every person on earth! And 3.4 Billion people are online ­ nearly half the global population. The numbers aren’t slowing down, either. In the past year, social media usage grew 10%, and mobile social users grew 17%1. A popular website may have 400,000 users after a year or so; Facebook has been adding that many every day.

What Companies does this Investment Include?

Social Media Mania is our name for Social Media ETF, an Exchange Traded Fund (“ETF”) from fund manager Global X. It currently includes 30 companies in social networking, file sharing, ecommerce, online and mobile gaming, and web­-based media. It’s a global investment, with more than 50% of its holdings beyond the US. In addition to Facebook, Alphabet, LinkedIn and Yahoo!, Social Media Mania provides exposure to Tencent Holdings Ltd, China’s largest internet service provider, Yandex N.V., the leading search engine in Russia, and Nexon Co, the online and mobile gaming giant based in Tokyo.

Who is this Investment for?

Social Media Mania may be for you if you’re a believer in the continued growth of online and mobile social networks, media and gaming. Since it’s got a specific focus, it shouldn’t be your only holding. But it could be a good complement to more diversified investments.

Why Did it Make the Cut on Stash?

Buying stock in individual social media companies can be expensive. At the time of this post, one share of Facebook costs over $100, and a share of Alphabet (formerly Google) is over $700. With Social Media Mania, you can invest in both of them, and 28 others, for as little as $5.

SOCL’s Holdings

SOCL Holdings

Category: Commentary

Topics: Disruptive Technology, Technology

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There is no corporate relationship between StashInvest (“Stash”) and Global X Management Company, LLC.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Global X Funds are distributed by SEI Investments Distribution Co. SEI Investments Distribution Co is not affiliated with Global X Management Company, StashInvest or any of their affiliates.

StashInvest is a registered investment advisor.  For more information about StashInvest, including the Form ADV Brochure and important disclosures, please see https://www.stashinvest.com/disclosurelibrary.

Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. The Fund invests in securities of companies engaged in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications. The risks related to investing in such companies include disruption in service caused by hardware or software failure, interruptions or delays in service by third-party data center hosting facilities and maintenance providers, security breaches involving certain private, sensitive, proprietary, and confidential information managed and transmitted by social media companies, and privacy concerns and laws, evolving Internet regulation, and other foreign or domestic regulations that may limit or otherwise affect the operations of such companies. Furthermore, the business models employed by the companies in the social media industry may not prove to be successful. Current and future holdings are subject to risk.

Shares of Global X Funds are bought and sold at market price, not NAV, and are not individually redeemed from the fund.  Buying and selling shares will result in brokerage commissions.

Solactive AG Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s summary and full prospectuses, which may be obtained by calling 1-888-GX-FUND-1 (1-888-493-8631), or by visiting www.globalxetfs.com. Read the prospectus carefully before investing.