The Fund seeks to provide exposure to the Metaverse by tracking the performance of the Ball Metaverse Index before fees and expenses. Note that the Roundhill Ball Metaverse ETF, which tracks the same index, would have been the largest sector ETF launched in the U.S. in 2021, according to TD Ameritrade. Thus the product managed to accumulate assets of $885 million.
The metaverse is seen as the successor to today’s mobile internet, but involves countless interoperable and permanent virtual worlds. Morgan Stanley and Goldman Sachs estimate that the metaverse economy will be around $8 trillion.
Metaverse ETFs contain the world’s largest technology companies and offer investors easy access to this growing market. Launching in June 2021, META is the first ETF of its kind and thus invests exclusively in Microsoft and Apple. But its two largest holdings are Nvidia, a leading chipmaker developing metaverse-critical infrastructure, and Roblox, a video game company responsible for creating “virtual worlds.” Thus the two companies represent 20% of the product weight.
META consists of a total of 40 companies and provides investors with exposure to a portfolio of companies actively involved in the metaverse. About 80% of its portfolio consists of US-based holdings, with the rest coming from Asia.
The Ball Metaverse Index is managed by Ball Metaverse Research Partners, an index and research firm led by veteran Metaverse investor, advisor and researcher Matthew Ball.
“We see the rise of the metaverse as transformative and valuable as the rise of the mobile internet and the fixed internet. It will likely impact all industries and professions, expand and/or disrupt current leaders, and spawn countless new businesses and technologies,” says Matthew Ball.