As capital and media interest floods into Metaverse startups, investors are looking for ways to take a position in this virtual world. Financial firms that create exchange traded funds — or ETFs — are moving fast to fill that demand. In fact, some experts are saying that Metaverse ETFs will be the most popular fund themes of 2022, so expect more to hit the market soon.
Investors in Metaverse ETFs expect their funds to grow in a few near-term and long-term ways. First, just as makers of picks, shovels and blue jeans made money during the Gold Rush, these ETFs comprise many of the publicly traded companies that will provide the infrastructure — computer chips, hardware, software, etc. — for the Metaverse. The rationale is that if the Metaverse takes off, these companies will also receive a boost. Second, as Metaverse winners eventually grow from startups to public companies through IPOs and SPACs, investors in these ETFs will, no doubt, gain exposure to these companies as managers buy these stocks for their funds.
However, here are four of the leading Metaverse-themed ETFs that are available right now:
Roundhill Ball Metaverse
The Roundhill Ball Metaverse ETF — which recently changed its symbol to METV — offers investors exposure to the Metaverse by providing investment results that closely correspond to the performance of the Ball Metaverse Index.
The ETF has about $922 million assets under management (AUM) and tracks about 44 holdings. It’s expense ratio is .75%.
Font Metaverse ETF
The Fount Metaverse ETF — MTVR — gives people who want to invest in the metaverse an index that was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology, according to the fund prospectus. This ETF currently tracks an index of around 50 companies that follow the metaverse theme.
The ETF has about $13.5 million aum and an expense ratio of .70%
Evolve Metaverse ETF
Labeled, Canada’s First Metaverse ETF, Evolve Metaverse ETF — MESH — is now trading on the Toronto Stock Exchange TSX.
Evolve writes that it views the metaverse as “an immersive 3D next-generation version of the internet, rendered by virtual or augmented reality technology.” The company designed the ETF to give investors an actively managed diversified portfolio of companies involved in the development of the metaverse.
The ETF has about $12.5 million aum and 25 holdings. Its management fee is .60%.
Horizons Global Metaverse Index ETF
According to the Horizons Global Metaverse Index ETF — MTAV — investment objective, this ETF “seeks to replicate, to the extent possible and net of expenses, the performance of an index that seeks to provide exposure to global, publicly listed companies that potentially stand to benefit from the adoption and usage of technologies expected to grow and support the functioning of the Metaverse. ”
The ETF is designed to replicate Solactive Global Metaverse Index’s performance, net of expenses.
It has $4.4 million in net assets and is also available on TSX. It has a .55% management fee.
Wait! There’s More
Defiance is offering an ETF closely aligned with Metaverse technologies, but is primarily focused on NTFs and blockchain and cryptocurrency systems, according to a news release.
Proshares reported late last year that it will be offering a Metaverse ETF soon.
This post aims to give information and provide access to information to investors to help them make their own decisions and not meant to be interpreted as investment advice.