An earnings-driven rally in Meta Platforms ( NASDAQ: META ) pushed exchanged traded funds tied to the communication services sector higher during Thursday's intraday trading.
Meta is owned by 332 different ETFs and forms a major part of Communication Services Select Sector SPDR Fund ( NYSEARCA: XLC ), with a portfolio weight of 16.76% as per ETF.com . This is the highest concentration in any ETF.
XLC also has a large stake in Alphabet ( GOOG ) ( GOOG ), which is rising 6% ahead of quarterly results after the closing bell. The ETF has a 11.8% weighting towards the firm's Class A shares and a 10.5% concentration of its Class C shares.
Other major holdings for XLC include Verizon ( VC ), Disney ( DIS ) and Netflix ( NFLX ).
XLC rose 6.7% in Thursday's intraday session driven by ~28% surge in META.
The rally also included other ETFs with a relatively high concentration of META stock: Fidelity MSCI Communication Services Index ETF ( NYSEARCA: FCOM ) +5.4% , Vanguard Communication Services ETF ( NYSEARCA: VOX ) +5.4% , iShares Global Comm Services ETF ( NYSEARCA: IXP ) +4% , Global X Social Media ETF ( NASDAQ: SOCL ) +4% .
The gains came after META surpassed Q4 revenue expectations and announced a $40B share buyback program. The company also sees Q1 total revenue of $26B to $28B in-line with consensus of $27.25B.
Meta's positive outlook also pushed its peers higher during midday trading session: Pinterest ( PINS ) +7.9% and Snapchat ( SNAP ) +10.8% .
Although 28% higher on Thursday and +55% so far this year, Meta is still 39% lower for the year.
Looking at the YTD performance for the META-related ETFs: XLC +22.5% , FCOM +21.8% , VOX +21.7% , IXP +18.8% and SOCL +22.8% .
Meanwhile, in Thursday's intraday action, broader market index SPY ( SPY ) and S&P 500 ( SP500 ) rose 1.6%, Nasdaq Composite ( COMP.IND ) +3.4% and Dow Jones ( DJI ) fractionally down.
For more in-depth analysis on META stock, click here .
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These ETFs have surged on Meta's earnings rally