NEW YORK ( TheStreet) -- With the announcement that Facebook was dropping $1 billion to scoop up the photo-sharing service, Instagram, the social media landscape has again found itself thrust into the spotlight. Unfortunately, neither Facebook nor Instagram are traded publicly, so how are investors supposed to target this burgeoning corner of the technology sector?
The social media industry is still relatively young and, for ETF investors, finding a proper instrument can be a tricky endeavor. While there are a variety of options available, not all are equally appropriate. Therefore, when preparing a game plan, individuals must be prepared to do their homework.
Case in point: at first glance, a fund like the Global X Social Media Index ETF (SOCL) may seem like an obvious choice for those looking to tap into social names like LinkedIn (LNKD) or Yelp (YELP). Upon proper investigation, however, challenges quickly arise. For one, while names like LinkedIn can be found toward the top of the list, the bulk of the SOCL's index is comprised of companies that many domestic investors have likely never heard of.
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