Global X Funds Launches First Social Media ETF

NEW YORK, Nov. 15, 2011 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds, today launched the Global X Social Media Index ETF, the first ETF globally to focus on social media companies.

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The social media industry continues to grow rapidly, providing new ways for people to connect, share, shop, create and network.  The Global X Social Media Index ETF attempts to capture this global industry in a single ETF, and includes companies from all over the world that provide social networking, file sharing, and other web-based media applications.  

User growth in social media has skyrocketed; a Pew Research Center survey says that in 2011 approximately 65% of adult internet users said that they use a social networking site, which is nearly double the percentage that reported social network usage in 2008. An increase in mobile phone usage has further propelled social media, with nearly 40% of social media users accessing such content directly from their mobile phones (Nielsen, 2011).  Not only are individual users tapped into this phenomenon, but approximately 84% of Fortune 100 companies utilize branded social media channels, while nearly 81% of the top Asian companies have expanded into branded social media channels, according to a 2011 study conducted by Burson-Marsteller. In the U.S. social media use by small businesses has grown to include nearly one out of every three businesses, demonstrating rapid growth with room for further expansion (Network Solutions, 2011).

"SOCL can provide an efficient way to tap into this global, dynamic sector," said Bruno del Ama, chief executive officer of Global X Funds. "As the industry continues to expand through IPOs, the index will capture these new companies shortly after their public debut, providing a relatively cost effective way to gain exposure to the social media industry."

The Global X Social Media Index ETF tracks the Solactive Social Media Index, which is designed to reflect the equity performance of companies involved in the social media industry. As of November 11, 2011, the Underlying Index's three largest stocks were DeNA Co., Sina Corp. and Netease.com Inc. International country exposure as of November 11, 2011 includes: China [36.28%], US [26.22%], Japan [19.95%], Russia [9.55%], Germany [2.28%], and other [5.65%].

ABOUT GLOBAL X FUNDS

Global X Funds is a New York-based provider of exchange-traded funds that facilitates access to investment opportunities across the global markets. With $1.4 billion in managed assets and over 100,000 investors from more than 100 countries as of October 28, 2011, Global X Funds currently offers exchange-traded funds that target Europe, Emerging Markets, Commodity Producers, Income Producers and Special Opportunities fund suites. For more information, please visit www.globalxfunds.com

DISCLOSURE

Investing involves risk, including the possible loss of principal.  In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. The Fund invests in securities of companies engaged in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications. The risks related to investing in such companies include disruption in service caused by hardware or software failure, interruptions or delays in service by third-party data center hosting facilities and maintenance providers, security breaches involving certain private, sensitive, proprietary and confidential information managed and transmitted by social media companies, and privacy concerns and laws, evolving Internet regulation and other foreign or domestic regulations that may limit or otherwise affect the operations of such companies. Furthermore, the business models employed by the companies in the social media industry may not prove to be successful.

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.

Structured Solutions AG Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Structured Solutions AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds.

Index data source: Structured Solutions AG.  Index components subject to change.

SOURCE Global X Funds