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‘Fresh’ metaverse ETF to watch while hedging bets in unpredictable markets

‘Fresh’ metaverse ETF to watch while hedging bets in unpredictable markets
Dino
Kurbegovic
4 weeks ago
2 mins read

While fears of inflation, rate hikes, and global conflicts are driving market volatility, there might be areas in this virtual reality worth looking into for the future. 

One such area is the metaverse, which abounds with investment opportunities. Some dub it to be much like the internet of the 1990s or 2000s placing big expectations on it. 

In a Morgan Stanely research, the total addressable market (TAM) for metaverse is seen at $8 trillion for U.S. consumer expenditure. Additionally, in the company’s memos and transcripts, the metaverse seems to always come up. 

Metaverse mentions in company transcripts Source: Morgan Stanely

Until fairly recently, Roundhill Ball Metaverse exchange-traded fund (NYSEARCA: METV) was the only metaverse exchange-traded fund (ETF), with more now springing up; yet, METV was the trailblazer created for the purpose of investing in the metaverse. 

METV details  

Currently, the fund has $528 million in assets under management with a total of 45 holdings in its portfolio, primarily large-cap tech companies. Since the metaverse is not just a video game but a combination of scenarios, applications, and communication channels in the digital space, it is understandable that no one company can create it on its own.

This is where METV comes in and scoops up the best reality and augmented reality, chip, headset manufacturers, game industry developers, cloud platforms, and network infrastructure providers to round out the offer. 

Fund performance 

The fund was launched on June 30, 2021, and has since fallen over 45%, caused by the overall environment for tech stocks in 2022. 

After reaching a peak of $17, in late November, the price plummeted to a low of $8, in mid-May, to now trade at $9.11. 

METV  20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Big technology companies need a new market to maintain their high growth rates, and it seems that they have found it in the metaverse. 

All in all, METV could be an interesting ETF for long-term investors looking to get into promising tech companies but are currently scared of the investing environment. 

Read also: How to invest in metaverse?

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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Dino Kurbegovic
Author

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.

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