After a horrible IPO, Facebook’s (NASDAQ:FB) stock price has been stabilizing lately. One factor is that the company will be included in various indexes, which will require purchases of the stock. For example, in late June the company will be added to the Russell 3000.
The index, which is based on market cap, is meant to reflect the broad market. And yes, it’s the basis of many important exchange-traded funds (ETFs), such as the iShares Russell 3000 Index ETF (NYSE:IWV) and the Vanguard Russell 3000 Index ETF (NASDAQ:VTHR).
While the Russell 3000 is important, the mega-indexes will not include Facebook for six months to a year. These include the Nasdaq 100 and the S&P 500. But once Facebook joins, there will certainly be a big boost of buying in the stock.
–Tom Taulli, InvestorPlace