metaverse etf

A Comprehensive Guide To The 5 Best Metaverse ETFs To Invest In This 2022

The Metaverse is projected to become the newest concept in tech aimed at revolutionizing user experience. It is an immersive virtual world where users can interact with each other as avatars using AI-powered tech. The technology sector worldwide continues to evolve rapidly.

Relatedly, the Metaverse is one of the newest ways institutional investors can invest in the internet. Studies have shown that the concept attracted more than $10 billion in funding across different sectors, including virtual worlds, augmented reality, V.R. gaming, and immersive gaming.

One of the best ways to invest in the Metaverse is through Metaverse Exchange Traded Funds (ETFs). Metaverse ETFs manage portfolios in the word of metaverse technology. They are currently in high demand as people are interested in improving and developing metaverse technology and integrating the virtual world. This post will help you choose the best ETFs to invest in the Metaverse and how you can invest in them.

What Is a Metaverse ETF?

ETFs are baskets of securities tradable on the stock market. They combine characteristics of traditional mutual funds and shares or are traded as a bundle in the stock exchange, similar to shares. Metaverse ETFs are themed funds that invest in the best metaverse stocks. It can also include Metaverse-related stocks.

ETFs are passively managed, meaning that the funders do not regularly buy and sell securities in the ETFs to make profits. They identify high-value assets and invest in them in the long run, making them a great investment option for the Metaverse. It is important to note that these investments are prone to unfavorable fluctuation in currency values and are different in generally accepted accounting principles.

Metaverse ETFs are thematic ETFs with low to moderate diversity and seek both early and high-value investments in the Metaverse sectors. A huge rise in interest in the Metaverse makes it a great investment opportunity for investors with a high-risk tolerance.

There has been a huge increase in the Metaverse ETFs you can invest in today. Below is a look at the top Metaverse ETFs you can invest in.

 

5 Metaverse ETFs to Invest In

Stock Name Key Features Best For Market Price
Roundhill Ball Metaverse ETF (NYSEARCA: METV) Large market cap Metaverse investors US$9.67
Evolve Metaverse ETF (TSX: MESH) First Canada Metaverse ETF Metaverse investors looking for investment in different countries CA$6.56
Horizons Global Metaverse Index ETF (TSX: MTAV) Trades on the Toronto Diverse sector allocation CA$17.79
Simplify Volt Equity Web3 ETF (NYSEARCA: WIII) First dedicated Web 3 ETF Investors with interest in cryptocurrency US$7.81
21Shares Decentraland ETP (SIX: MANA) Only invests in Decentraland Investors interested in investing in ETP US$5.71

 

1. Roundhill Ball Metaverse ETF (NYSEARCA: METV)

Launched in June 2021, METV was the first ever Metaverse ETF launched in the market. It is one of the most popular Metaverse ETFs and holds Metaverse’s largest market cap and stable stocks based on performance data. METV is one of the safest ways to invest in this investment trend.

The Roundhill Ball Metaverse ETF invests in 40 stocks from companies actively developing and improving the Metaverse. Most of their shareholdings are based in the United States, and part is in Asia.

Roundhill Ball Metaverse ETF invests in the world’s largest tech companies, including Apple and Microsoft. It has also invested in Nvidia, a chip manufacturer essential in the Metaverse, and Roblox, a video gaming company responsible for creating the different virtual worlds in the Metaverse.

What We Like About The ETF

  • Largest market cap
  • Holds the most stable stocks in the Metaverse
  • The oldest Metaverse ETFs in the market.

What We Don’t Like About the Stock ETF

  • Poses a risk to your capital

metaverse illustration concept human touchingr

2. Evolve Metaverse ETF (TSX: MESH)

Evolve Metaverse ETF is one of the newest ETFs in the market, with little information on what to expect from it. The ETF currently has a market cap of $8 million. 

MESH’s biggest advantage over other Meta ETFs is its equal weighting. This means it splits its total funds across all the stocks it invests in, thereby evenly spreading its risks.

Evolve Metaverse ETF is Canada’s first Metaverse ETF, offering investors access to an actively managed portfolio of companies involved in the Metaverse. It has stocks from all over the world, mainly focusing on Asia Pacific Emerging Markets and the United States.

Around 75% of the fund belongs to American companies, while the remaining 25% is from Japanese, Chinese and Singaporean companies. The ETF also mostly invests in companies in the technology sectors, including Meta, Walt Disney, and Autodesk.

What We Like About the ETF

  • Invests in already high-performing companies
  • Large Market cap

What We Like About the ETF

  • Fairly new in the market
  • Poses a risk on your investment capital

3. Horizons Global Metaverse Index ETF (TSX: MTAV)

The Horizons Global Metaverse Index ETF replicates the performance of the Solactive Global Metaverse Index. It is also a Canadian-based ETF trading on the Toronto Stock Exchange. It is also a new ETF on the stock exchange, and there is little historical performance to analyze its performance data.

The MTAV is a different stock from other ETFs on the list. Its features, around 25%, are targeted toward the tech industry. It also splits across a wide range of sectors. It has stocks from different sectors, including the digital payments, game industry, and AR/VR.

The Horizons Global Metaverse includes all companies around the world. Still, it has a huge preference for stocks from the U.S. It offers equal weightings on its holdings, offering a less risky approach to investing in ETFs. Some of its largest holdings include Visa, Google, and Amazon.

What We Like About the ETF

  • Invests in a range of sectors, making it a less risky approach to invest in ETFs
  • It invests in large stocks in the ETFs in Visa, Google, and Amazon
  • It is a less risky investment approach

What We Do Not Like About the ETF

  • It poses a risk to your investment capital
  • Little historical performance; hence not easy to project its performance

4. Simplify Volt Equity Web3 ETF (NYSEARCA: WIII)

Released in January 2022, the WIII is structured to take advantage of the crypto market. 10% of its fund is invested in the Grayscale Bitcoin Trust, which offers great exposure to Bitcoin.

The Simplify Volt Equity Web3 ETF is the first web3 ETF. It closely follows stocks from companies in Web3 and Metaverse. The ETF closely follows the performance of stocks of innovative companies in both industries.

The Simplify Volt Equity Web 3 ETF is also relatively risky. It exposes you to an unproven new industry, so it is hard to prove how the industry will perform. It will, however, expose investors to highly innovative industries where the stocks are likely to rise in value.

What We Like About the ETF

  • Spreads its risk across different industries
  • Gives exposure to innovation in a high-growth industry

What We Do Not Like About the ETF

  • Poses a risk on your capital

5. 21 Shares Decentraland ETP (SIX: MANA)

21 Shares Decentraland is the first exchange-traded product that focuses on Decentraland. The ETP offers investors a chance to speculate on the success of a specific part of the Metaverse rather than the whole metaverse sector.

Launched in February 2022, the 21 Shares Decentraland ETP is listed on the Swiss Stock Exchange. However, it only owns the MANA token, which is solely dependent on the performance of the cryptocurrency.

The more people are attracted to invest in Decentraland, the increase in the value of the coin and, consequently, the ETP. The ETP is, however, more volatile for its sole focus since there is no guarantee of its success. Decentraland has proved to be a lead innovator attracting big companies, including Binance and Nike. If this trend continues, it will be the best ETP to invest on with the best return on investment.

What We Like About the ETF

  • First exchange-traded product in the Metaverse
  • Invest on Decentraland is one of the most groundbreaking projects in the Metaverse

What We Do Not Like About the ETF

  • Solely focus on one product in the Metaverse
  • Yet to be proven to be profitable
  • Poses a risk on your capital

Hand touch on visual screen metaverse new trend for future, metaverse Avatar

 

Are Metaverse ETFs A Good Investment Idea?

Yes, Metaverse ETFs are a great way to invest in the future. The industry is expected to increase by more than $500 billion in value in 2028. The ETFs are an easy way to start investing in the Metaverse. The industry is young and expected to experience some volatility, but the overall trend should be up.

You can buy or sell a Metaverse ETF at a market price that might be lower or higher than its NAV. Before making your investment decision seek investment advice from a professional lime Mirae asset global investments and also check on the Metaverse ETF’s past performance. The investment return and the principal value of the investment might fluctuate, meaning you might gain or lose when selling your Metaverse ETF.

Many companies in the Metaverse are large-cap tech companies, and their shares are the most stable in the stock markets. These companies include the big media companies, including Meta Platforms (Facebook), and big e-commerce companies, including Amazon.

Investing in ETFs is a great way to expose yourself to other sectors in the tech industries that you might not have access to. It is, however, essential to keep up with the news and market analysis to keep up with the markets. This way, you will be in a position to know when to invest or pull out from the market.

You can invest in a wide range of ETFs in the Metaverse, including Proshares Metaverse ETF, which focuses on most of the virtual ecosystem.

Related Questions (FAQs)

1. What Are the Advantages of Investing in Metaverse ETFs?

  • High-level risk diversification and high market price return
  • It does not require a lot of initial investment funds
  • Experienced professionals create funds
  • It does not require an in-depth market analysis
  • Favorable forecast for the segment

2. What Are the Disadvantages of Investing in Metaverse ETFs?

  • Investors do not control the composition of the fund
  • Additional fee for fund management when bought from a secondary market
  • Low growth potential compared to other stock investments

3. Where Can I Buy the Best Metaverse ETFs?

Buying and selling ETFs is a simple process similar to buying shares. Therefore, before investing in Metaverse ETFs, you must sign up with a brokerage firm. You can therefore buy metaverse ETFs from your favorite brokerage firm.

4. How to Choose the Right Metaverse ETF for You?

There are currently many Metaverse ETFs to choose from. Here are some factors you should always consider before selecting a Metaverse ETF to invest in:

  • Listed Securities: Each Metaverse ETF has a list of securities it invests in, and you should always explore all the securities listed. Be on the lookout for the lead innovators in the Metaverse, including Meta, Roblox, and NVIDIA, among others.
  • Liquidity: You should look at the daily traded units of the Metaverse ETF in volumes and the liquidity of the individual securities.
  • ETF Focus: Ensure that you fully understand the niche you are investing in
  • Management Fees: Different ETF funds come with different fees, and it is important to compare the different fees of the ETFs before you select the one you need to invest in.

Closing

The Metaverse has piqued the interest of many investors. Metaverse ETFs are one of the best ways to jump on the internet investment bandwagon. However, it is important to remember that the Metaverse is an evolving technology, and there is no guarantee for adopting the innovations. It is, however, expected that the returns profits will be in the long run, and it requires a lot of patience.

Key Takeaways

  • Metaverse ETFs are one of the easiest ways to invest in the Metaverse.
  • Metaverse is an evolving technology, and there is no timeline for its market adoption rates.
  • The Metaverse is a volatile industry, and you should only invest in it with a high-risk appetite.

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