You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely. Stocks and commodities are more normally bought and held for longer. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.ĬFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. But with traditional trading, you buy the assets for the full amount. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.ĬFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. You can still benefit if the market moves in your favour, or make a loss if it moves against you. At the same time, both funds sold some of their Tesla Inc. The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD. 2 days ago &0183 &32 ARKK bought 150,459 shares of Meta on Tuesday, while ARKW added 24,389, according to a company update. The difference between trading assets and CFDs Top 10 holdings as of 17 March 2022 Solactive Metaverse Theme Index 2022 - Photo: with data by ProSharesĬompanies in the Solactive Index include names most would associate with cutting edge technology – one-quarter of the index is semiconductor stocks – but it also has some exposure to the retail, consumer apparel, real estate and health-care sectors.įor example, aside from tech staples Apple, Meta Platforms, Microsoft and NVIDIA, home furnishings retailer Williams-Sonoma represents 0.41% of the index’s exposure. Solactive Metaverse Theme Index Exposures as of 10 Mar. SOCL tracks the Stuttgart Solactive AG Social Media Index and charges a 65 basis point fee for concentration in a few large firms providing social networking, file sharing, and other online media tools.įor more news, information, and strategy, visit VettaFi. FCOM has seen $20 million in net inflows over the last three months.įinally, investors may also want to follow the Global X Social Media ETF (SOCL) as well, where META is weighted at 10.2% just behind Twitter Inc., (TWTR) which will no longer be publicly held following its purchase by billionaire Tesla CEO Elon Musk. FCOM charges just nine basis points to track the MSCI USA IMI Communication Services 25/50 Index including several video game and communications firms. The cheapest of the four, the Fidelity MSCI Communication Services Index ETF (FCOM), holds META at 10.3%, also second to the combined weight of GOOG and GOOGL at 27%. VOX also charges a 10 basis point fee and has seen $46 million in three month flows. VOX tracks the MSCI US IMI 25/50 Communication Services Index, with a significant lean towards mega-cap companies which may benefit those interested in a sector rotation strategy. The Vanguard Communications Services ETF (VOX) holds META at 11.1%, just behind Alphabet Inc.’s Class A (GOOGL) and Class C (GOOG) stocks at 22.8% combined weight. XLC charges just 10 basis points, with one-month returns beating the ETF Database category average by 4.7%. XLC tracks the S&P Communication Services Select Sector Index and lists META as its largest holding by weight at 16.2% as part of its large-cap growth focus. Investors should keep an eye on four META ETFs holding META at a minimum 10% weight that could rebound as the market’s take on the firm’s prospects levels out, starting with the Communication Services Select Sector SPDR Fund (XLC). 4 META ETFs With Buy the Dip Opportunity. META also plans to expand its data centers to support next-generation AI, for example, that could sharpen its digital advertising capabilities. Reality Labs has posted some serious losses, but the division represents an investment in the future which could still pay off. Much like the China stock selloff earlier this week, emotions were part of the equation. But markets, nervous about rising rates and the specter of a recession, also had the finger on the trigger to sell with the first headline earnings drop from the big tech names. Investors had good reason this week to be concerned about META following its loss of $3.7 billion on Reality Labs, the firm’s metaverse department. While many investors are questioning Meta chief executive Mark Zuckerberg’s significant investment in the metaverse, the social media firm offers a risky but intriguing opportunity to buy the dip with META ETFs. (META) stock saw a huge falloff this week following a more than 50% decrease to its quarterly profits, driven by a precipitous drop to its digital advertising numbers.
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