NEW YORK (
) -- Proof that there are exceptions to every rule:
The Global-X Social Media ETF
When it was first rolled out in late 2011, I was among the very first (I'm now not proud to say) to
Historically, sector mutual funds had a tendency to arrive late in a trend. They often signaled the top. As I
at the time, "What always after the fact?"
And the social media ETF wasn't the only one to have a joke on me. Also check out the
First Trust ISE Cloud Computing Index
, which I also rolled my eyes at in that story.
Beyond the historic top-ticking of sector funds, there was reason to be leery and (for skeptics) even embolden: For more than a year the social media fund looked like a loser.
didn't help. But then the likes of
spiced things up. On Deck:
And over on the cloud side - cloud computing has been the story. The only surprise is that its biggest holding is Facebook, not
, which ranks fourth among its holdings.
Facebook? As a cloud play? Really?
Turns out anything and everything can be a cloud play. Its holdings include
According to the fund's
, "a security must be engaged in a business activity supporting or
the cloud computing space."
Well, "utilizing" means
None of these quibbles matter. The social fund was launched long before Facebook's IPO, Facebook's ability to show mobile growth and Twitter's announced IPO; in retrospect giving it a long runway -- long before "social" as a faddish investment theme peaks. (Don't get me wrong: Social is not going away, but after a while themes like these become mainstream.) As for the cloud fund, Facebook is hardly a "cloud" play, yet it leads an index that should be weighted more to Salesforce. All of which is the ultimate reminder: In this market the tide lifts all stocks. Just remember: The tide can go out as it can go in.
--Written by Herb Greenberg.
Herb Greenberg, editor of Herb Greenberg's Reality Check, is a contributor to CNBC. He does not own shares, short or trade shares in an individual corporate security.