New products introduced over the last week include an ETF that will offer exposure to the much-vaunted Facebook IPO.
In addition, Franklin Square closed FSIC to investors and prepared its successor FSIC II for its own IPO on June 1, and Russell Investments’ index reconstitution process adds tech IPOs within four months of debut.
Here are the latest developments of interest to advisors:
1) Global X Social Media and First Trust ETF to Offer Facebook IPO Exposure
As demand skyrockets for Facebook’s (FB) initial public offering of stock on Friday, advisors are planning to snap up exchange-traded funds that can give their clients exposure to the hot new social media IPO without exposing them to the stock’s expected initial volatility.
The two ETFs that will offer exposure to Facebook within the first trading week of its launch are the Global X Social Media Index ETF (SOCL) and the First Trust US IPO Index Fund (FPX), according to Scott Freeze, president of Street One Financial, a broker-dealer that works with ETF issuers, money managers and registered investment advisors (RIAs) of $13 billion to $20 billion in assets to identify ETFs that provide the desired mix of manager objectives, fees and liquidity.
“We have seen a huge amount of interest,” Global X Funds CEO Bruno del Ama told AdvisorOne in an interview on Wednesday. “We brought the fund to market in November 2011, and demand was slow when it first came to market, but following the announcement of the Facebook IPO it really took off, and we’ve had many inquiries from the financial advisor community. SOCL is an open-end ETF. Anybody with a brokerage account can buy it, and it trades like any other stock.”
Read the entire story, A Way to Buy Facebook With a Cushion for the Risk, at AdvisorOne.
2) Franklin Square Closes FSIC to New Investors, Prepares FSIC II for June