Metaverse Etf: Invest In The Virtual Future Now?

The Roundhill Ball Metaverse ETF (META) is an investment fund that offers investors exposure to the metaverse, which is defined as a successor to the current internet with interoperability, persistence, synchronisation, and open access to unlimited participants. The META ETF has seen rapid growth in assets under management, reaching $250 million in 18 weeks, and has performed well in recent days, trading at $16 per share, with a 1.52% increase over the past 24 hours. With top holdings in Nvidia, Microsoft, Roblox, Meta Platforms Inc., and Unity Software, the META ETF provides an opportunity for investors to gain early exposure to the growing metaverse space.

What is the Roundhill Ball Metaverse ETF?

The Roundhill Ball Metaverse ETF (META ETF) is an investment fund that offers investors exposure to the metaverse. The metaverse is defined as a successor to the current internet that will be interoperable, persistent, synchronous, and open to unlimited participants.

The META ETF provides investment results close to the performance of the Ball Metaverse Index ("BALL META Index"). It has grown significantly in assets under management (AUM), reaching $250 million in 18 weeks. Its top holdings include Nvidia (10.2%), Microsoft (7.3%), Roblox (6.4%), Meta Platforms Inc. (6.2%), and Unity Software (5.0%).

The META ETF has performed well in recent days, trading at $16 per share, with a 1.52% increase over the past 24 hours and a nearly 12% increase in value over the past month. Its price is predicted to continue rising as investments in the metaverse space increase, with the potential to reach the $20 mark in the coming weeks if the current momentum is maintained.

Current performance and price of the ETF

As of February 22, 2024, the Roundhill Ball Metaverse ETF (METV) had a day range of 12.12 to 12.24 and a 52-week range of 8.17 to 12.58. The total net assets of the ETF were valued at $429.8 million, with an average volume of 267,390 and a net expense ratio of 0.60%. The ETF's performance relative to its peers was ranked in the 38th percentile.

The Roundhill Ball Metaverse ETF seeks to track the performance of the Ball Metaverse Index, which is composed of companies that engage in activities or provide products and services to enable and benefit from the Metaverse. The ETF's holdings and allocations are subject to change and should not be interpreted as an offer of securities.

Roundhill Investments believes that the Metaverse will become the successor to the current internet, creating an experience that spans both the virtual and real worlds. The market growth of the Metaverse is expected to generate up to $5 trillion in impact by 2030, with user engagement and exponential adoption supporting this growth.

The ETF began trading on June 30, 2021, with a gross expense ratio of 0.59% per year. Options trading is available for METV, and it is passively managed, designed to track the underlying index.

Top holdings of the ETF

The Roundhill Ball Metaverse ETF (METV) is the world's largest Metaverse fund. It offers investors exposure to the Metaverse, which is defined as a successor to the current internet that will be interoperable, persistent, synchronous, and open to unlimited participants. The fund seeks to track the performance of the Ball Metaverse Index, which consists of companies that are actively involved in the Metaverse across various sectors.

• Meta Platforms Inc Class A (META): Formerly known as Facebook, Inc., Meta Platforms is a social media and technology company. It offers products such as Facebook, Instagram, Messenger, WhatsApp, and virtual reality headsets, enabling people to connect and share with others worldwide. The company changed its name from Facebook to Meta in October 2021 and has a strong presence in the Metaverse space through its Reality Labs segment.
• Roblox Corp Ordinary Shares - Class A (RBLX): Roblox is a virtual platform that reported 49.3 billion hours of gameplay in 2022, indicating high levels of user engagement. It provides a digital world where users can explore, create, socialise, and participate in various experiences, making it a key player in the Metaverse.
• ARM Holdings PLC ADR: ARM Holdings is a semiconductor and software design company, specialising in energy-efficient processor designs. Their technology powers a wide range of products, including smartphones, computers, and other devices. While they may not be directly associated with the Metaverse, their processor technology could play a crucial role in powering the hardware and devices needed for Metaverse experiences.
• Taiwan Semiconductor Manufacturing Co Ltd ADR: Taiwan Semiconductor Manufacturing Company (TSMC) is one of the world's largest semiconductor manufacturers. They produce chips and provide manufacturing services for various technology companies. With the demand for semiconductors expected to increase due to the Metaverse's hardware requirements, TSMC could be well-positioned to benefit from this growth.
• Alphabet Inc - Ordinary Shares - Class A (GOOGL): Alphabet Inc., the parent company of Google, has a diverse range of businesses and investments. They have shown interest in the Metaverse space, with Google creating tools for developers to build immersive experiences and hosting virtual events on their platforms.
• Microsoft Corporation (MSFT): Microsoft is a technology company that offers software, hardware, and related services. They have been investing in the Metaverse, with their Microsoft Mesh platform enabling users to collaborate and communicate in virtual spaces. Microsoft also offers a range of mixed reality headsets, such as HoloLens, positioning them as a key player in the Metaverse hardware market.

Pros and cons of investing in the ETF

Pros and Cons of Investing in the Roundhill Ball Metaverse ETF

Pros

• The ETF has been performing well, adding nearly 12% to its value over the past month.
• The ETF provides investors with exposure to the metaverse, which is defined as a successor to the current internet that will be interoperable, persistent, synchronous, and open to unlimited participants.
• The ETF's top holdings include well-known companies such as Nvidia, Microsoft, Roblox, Meta Platforms Inc., and Unity Software.
• The investment in the metaverse space is still in its early stages, and the recent rebranding of Facebook to Meta Platforms Inc. to explore the metaverse space has brought more attention to it.
• The ETF has been growing steadily, crossing $50 million in six weeks, $100 million in nine, and $250 million in 18 weeks.

Cons

• The ETF's price could be volatile and subject to market risk, which cannot be diversified away.
• The ETF's top holdings include large technology companies that may already be part of an investor's portfolio, so it may not provide enough diversification.
• The financial position of Meta Platforms Inc., one of the top holdings, has been described as "frail" based on recent SEC disclosures.
• The overall market value of any company in the ETF could be influenced by factors beyond the company's control, such as economic trends or industry-specific events.

How to buy the ETF

The Roundhill Ball Metaverse ETF (METV) is listed and trades on the NYSE stock exchange. You can buy it through any registered brokerage.

The ETF's ticker symbol was changed from "META" to "METV" on January 31, 2022.

The fund's gross expense ratio is 0.59% per year, and it has a .75% expense ratio. Options trading is available for METV.

The ETF's holdings and allocations are subject to change at any time and should not be interpreted as an offer of securities.

Frequently asked questions