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A Metaverse ETF Worth Keeping an Eye On
Keep track of companies involved in the present and future of virtual social interactions
A metaverse can be defined as a virtual world where users can interact with a computer-generated environment and other users, facilitated by virtual and augmented reality headsets. The metaverse market may reach $783.3 billion in 2024 vs. $478.7 billion in 2020, representing a compound annual growth rate of 13.1% based on analysis by Bloomberg Intelligence.
Many may see the metaverse as a joke, but it has the chance to reach a market size of 2.7x of just gaming software, services, and advertising revenue due to the opportunity it has to encapsulate live entertainment such as concerts and sports events. When it comes to keeping track of publicly-traded companies involved in the metaverse across classifications such as computing, networking, virtual platforms, interchange standards, payments, content services, and hardware, there is an ETF that simplifies that. That ETF is the Roundhill Ball Metaverse ETF (METV).
METV is designed to offer investors exposure to the metaverse by providing investment results that closely correspond to the performance of the Ball Metaverse Index, which is the first index globally designed to track the performance of the metaverse. As of February 9th, 2022, the top ten holdings of METV include Nvidia, Microsoft, Meta Platforms, Roblox, Unity Software, Snap, Taiwan Semiconductor Manufacturing, Apple, Amazon, and Qualcomm. The ETF has 45 holdings total that cover all the classifications stated above (computing, networking, virtual platforms, interchange standards, payments, content services, and hardware).
As of February 9th, 2022, METV has a price of $13.32 per share, assets under management of $860 million, shares outstanding of 67.1 million, and an expense ratio of 0.59%. Since its launch on June 30th, 2021, METV has provided a total return of -15.21%. With the recent market correction and continued fear of interest rate hikes, METV will likely have a tough time providing positive returns in 2022. It is still less than one year since it has launched, so we will have to wait and see if the metaverse panes out to truly be the social interaction standard of the future that companies and investors are betting…
