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S&P 500 ETFs Open Doors to Facebook


Almost exactly a year after it was added to the Nasdaq 100 and as a result, the PowerShares QQQ (QQQ), Mark Zuckerberg’s Facebook (FB) has gained entry to the S&P 500.

After the close of U.S. markets Wednesday, Standard & Poor’s confirmed that Facebook join the S&P 500 after the close of trading on Dec. 20. New additions Facebook, Alliance Data Systems (ADS)  and Mohawk Industries (MHK) are replacing Abercrombie & Fitch (ANF), JDS Uniphase (JDSU) and Teradyne (TER).

Facebook’s entry  into the S&P 500 means the stocks will soon be found in some of the largest ETFs, including the largest in the world, the $166.1 billion SPDR S&P 500 (SPY) and the $51.2 billion iShares Core S&P 500 ETF (IVV) .

As an S&P 500 member, Facebook will also be included in the Guggenheim S&P 500 Equal Weight ETF (RSP) .  [A Look at an S&P 500 Equal-Weight ETF]

Facebook is also being added to the S&P 100, making the stock eligible for inclusion in the $4 billion iShares S&P 100 ETF (OEF) .

Facebook’s market capitalization at Wednesday’s close was $121.2 billion, meaning the company is bigger than Dow components Boeing (BA), McDonald’s and United Technologies (UTX) to name a few.

California-based Facebook is the tenth-largest holding  in QQQ, the Nasdaq 100 tracking ETF.

iShares S&P 100 ETF

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Facebook, QQQ, RSPY and SPY.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.