Founded in a Harvard dorm room in 2004, Facebook (FB) has in the intervening years become one of the major companies of our time. Far from the first social network on the internet, Facebook has however established itself as the most successful, boasting more than 2.4 billion active users worldwide and 85 offices spread across 35 countries.

As of 2019, Facebook has a market cap of more than $460 billion, and the company reported total revenue of nearly $56 billion in 2018, mostly generated from online advertising. That figure was up 37% from the $40 billion in revenue the company reported in 2017. The company has been actively acquiring other companies since its founding and currently owns Instagram, WhatsApp, Occulus VR, FriendFeed and adtech company LiveRail among its total 79 businesses.

Facebook’s 2012 IPO was the largest tech IPO in U.S. history, with more than 421 million shares priced at $38 per share raising roughly $16 billion.

Rationale

A direct way to gain exposure to Facebook is to buy the listed shares. But, despite its growth, Facebook remains a volatile and uncertain company. It is still only 15 years old, so it continues to experience growing pains in its new industry. What’s more, potential government regulation of the platform could slow its growth going forward. 

A solution that can dampen some of that volatility is to buy funds that provide exposure to Facebook and other similar firms, rather than FB shares themselves. After all, the return drivers that will benefit Facebook might also benefit other similar firms in online advertising, digital media, and hardware. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Facebook through these types of funds.

Investing in FB

A search on Magnifi suggests that investors can gain access to Facebook via a number of different funds and ETFs, including those shown below. 

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