SNAP crashes 40% and drags down SOCL and other related ETFs
Justin Sullivan/Getty Images News

The Global X Social Media ETF (NASDAQ:SOCL) has dropped 7.1% in early trading on Tuesday, as the exchange traded fund has been dragged lower by the collapse in Snap (NYSE:SNAP), which has plummeted 40% as of 10:15 a.m. ET.
SOCL is a thematic ETF that aims to capitalize on the growing trends of the social media marketplace. SNAP represents its fifth largest holding, with the social media platform weighted within the fund at 6.15%.
Twitter (TWTR) and Facebook parent Meta Platforms (FB) also represent major holdings. Weighed down by the SNAP news, TWTR retreated 3% in early trading, while FB dropped almost 10%.
Tuesday's slide added to recent weakness for SOCL. The ETF, with its 44 holdings and 0.65% expense ratio, has dropped 38.2% in 2022 and has cratered 57.4% from its all-time trading high back in Feb. 2021.
SOCL is not the only exchange traded fund that has drifted lower off SNAPâs sell-off. Other funds include the Roundhill Ball Metaverse ETF (NYSEARCA:METV) -6.9%, Global X Metaverse ETF (NASDAQ:VR) -2.5%, and the Innovator Loup Frontier Tech ETF (LOUP) -4.8%. METV has a 5.29% weighting in SNAP, whereas VR and LOUP have weightings of 5.12% and 4.53%.
SNAPâs plunge in price action comes as the company warned its second-quarter revenue and EBITDA would be below the low-end of its previous guidance.