It is worth highlighting that Subversive Metaverse ETF (PUNK) has a 2% short position on Meta Platforms, aka the former Facebook, which is unusual for an ETF. For the Nasdaq, this handful of companies constitutes 55% of the entire index, but only 12% to 36% for the metaverse ETFs. We can highlight the overlap of the metaverse ETFs with the Nasdaq 100 by showing the exposure of the top 10 constituents. For example, ARKK features active shares above 90%. Although this indicates that these ETFs feature concentrated portfolios that are different from the major indices, the active bets could be increased. The exception is the Fount Metaverse ETF (MTVR), which is more diversified with a 50% exposure to US stocks and meaningful allocations to Korean, Chinese, and Japanese stocks.Ĭalculating the active share for the ETFs where holdings data is available highlights between 70% and 80% when using the Nasdaq 100 or a global tech index as benchmarks. Benchmarking the three ETFs that have some meaningful trading history to the Nasdaq highlights underperformance in the last 12 months.Īnalysing the geographical exposure of the metaverse ETFs shows an overweight to the US, where about 80% of the stocks are derived from. However, the former, ie performance, is not there, which might explain the low amount of assets managed by these ETFs.
BUY META ETF SOFTWARE
Technology companies want to provide the software and hardware, while others like the fashion company Gucci want to engage with a younger audience. The latter is apparent for metaverse ETFs as indicated by most of the major companies announcing metaverse strategies. Thematic investing can be characterised as performance chasing with a narrative. Launching ETFs is much like venture capital, ie six ETFs fail, three break even, and one makes the effort worthwhile by accumulating sufficient assets to become a profitable fund for the issuer. It will be interesting to see if the other ETFs can compete and grow their assets under management. In comparison, the Ark Innovation ETF (ARKK), which is the largest thematic ETF, manages $9bn.įurthermore, the oldest metaverse ETF (METV) has a 97% market share, which highlights the first-mover advantage in the ETF space. Having said this, some of the newer products like the Fidelity Metaverse ETF (FMET) are cheaper as it has become a crowded space, where price competitiveness matters.Īlthough there are already seven ETFs providing exposure to the metaverse, their combined assets under management are only $650m, which seems somewhat small compared to the media attention the metaverse has received in the last 12 months. The average management fees of the seven ETFs is 0.60%, compared to 0.15% for a Nasdaq 100 ETF like QQQM. These ETFs can be characterised as thematic ETFs, which is reflected in their fees.
BUY META ETF MOVIE
The Steven Spielberg movie Ready Player One often gets referenced as a vision for the metaverse. The most common vision is a virtual reality environment that is accessed via goggles or headsets. There is no common agreement on what the metaverse represents, even amongst the developers and companies building the infrastructure or applications for it. We focus on ETFs trading in the US that specialise on the metaverse, which is a universe of 7 instruments. In addition to METV, there have been a further six ETF launches in the US over the last 12 months that aim to provide exposure to the metaverse. The purchase price was undisclosed, but it is difficult to imagine a better buyer than a corporation run by a future-focused founder that has a market cap north of $600bn and $16bn of cash. Somewhat unsurprisingly, the Roundhill Ball Metaverse ETF changed its ticker from META to METV in January 2022, and sold META to Meta Platforms. Roundhill subsequently launched a European-listed version of METV in March this year, the Roundhill Ball Metaverse UCITS ETF (METV). Specifically, it was before Facebook changed its name to Meta Platforms to emphasise its new focus on the metaverse. The product was launched in June 2021, which was well before the metaverse become the new playing field for crypto startups and tech giants. However, the best ticker of recent years must have been META of the Roundhill Ball Metaverse ETF (METV).
TAIL is tough to beat for a tail-risk fund. Anyone looking for a gold ETF is bound to come across State Street Global Advisors’ GLD, similar to OIL for getting exposure to oil. Finding the right ticker for an ETF launch is critical for issuers as these have an outsized impact on the fortune of the ETF.
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