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Want Exposure to Facebook? Here's How

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Facebook will be added to the tech-heavy Nasdaq 100 index prior to the open Wednesday, replacing Indian tech firm Infosys, which is transferring its listing to the NYSE on Wednesday.

As first reported by CNBC's Bertha Coombs, the addition of Facebook to the Nasdaq 100 will instantly give investors and traders of the popular PowerShares QQQ Trust ETF some exposure to the social media stock.

Most Actively-Traded ETFs

Ticker Name Avg. Daily Volume
SPY SPDR S&P 500 133m
XLF Financial Select Sector SPDR 57m
EEM MSCI Emerging Markets Index Fund 49m
QQQ PowerShares QQQ Trust ETF 40m
IWM Russell 2000 Index Fund 38m
Source: ETFdb

The QQQ ETF is the 4th most actively-traded ETF in the market, and it replicates the holdings and tracks the performance of the Nasdaq 100 index.

However, if investors are looking to gain some exposure to Facebook through ETFs, without directly owning the company's common stock, they may want to look beyond the QQQs.

Nasdaq 100/QQQ ETF Weightings of Select Large Cap Techs

Apple 16.3%
Microsoft 7.3%
Google 7.3%
Oracle 4.9%
Amazon.com 3.6%
Qualcomm 3.5%
Cisco Systems 3.4%
Intel 3.2%
eBay 2.1%
Source: Thomson Reuters

Based on the $30 billion market cap of its float (the shares available for public trading), Facebook will probably have a weighting of around 1 percent in the QQQ ETF – about the same weighting as Baidu, DirecTV and Priceline.com.

While that makes it one of the top 25 most influential stocks on the Nasdaq 100, Facebook's index weighting will still be much smaller than some of the bigger larger cap tech stocks:

ETFs with Facebook Exposure

Ticker Name Facebook Weighting
SOCL Global X Social Media ETF 14%
FPX First Trust U.S. IPO ETF 10%
FDN First Trust DJ Internet ETF 4%

Since Facebook had its IPO nearly 7 months ago, a number of other ETFs have already incorporated the stock into its holdings. Those ETFs provide an even greater exposure to Facebook than the QQQ ETF, but are much more thinly-traded and have far fewer assets under management.