
Metaverse ETFs: What Are They and How to Invest in Them?
Metaverse: a word you have undoubtedly heard in 2022. For example, the tech giant Facebook changed its company name to Meta at the end of 2021. It is touted as the next generation of the internet. But is it also an interesting investment? In this blog we discuss the metaverse ETF. What exactly are they and what are the best Metaverse ETFs ?
The Best Metaverse ETFs in 2022
Metaverse ETFs are a way to invest in this new industry. The ETFs contain the largest tech companies and therefore offer easy access to a potentially growing market. Because the Metaverse is still a new industry, there are not many ETFs of it. An example of a Metaverse ETF is the Roundhill Ball Metaverse ETF.
Roundhill Ball Metaverse ETF (META)
The Roundhill Ball is a Metaverse ETF that tracks the Ball metaverse index. This index includes 40 companies that are involved in the Metaverse. Of these, 80% are based in the United States and 20% are from Asia.
The META ETF also includes large technology companies Microsoft, Apple and Facebook (currently Meta). The risk of new ETFs like the META is that there is little history to judge the ETF on. So always do your homework before you make an investment.
What is the Metaverse and what are Metaverse ETFs?
The Metaverse is presented as the next generation of the internet. One that is even more powerful. It aims to create a virtual world where people can connect with each other online. You can perform all kinds of activities in a virtual 3D world with your own avatar. For now, the Metaverse remains an idea that is the subject of much speculation .
With a Metaverse ETF you can invest in this new sector. An ETF is a stock exchange-traded fund that tries to follow the stock market as closely as possible. Metaverse ETFs focus on companies involved in the metaverse industry. This can range from small companies that focus purely on the Metaverse to large tech giants that adapt to the Metaverse.
Want to know more about what an ETF is exactly? Read our article: What is an ETF?
Are Metaverse ETFs a Good Investment?
The Metaverse is a new industry and therefore has a lot of growth potential. Because it is still in its infancy, it brings a lot of volatility to the stock market. This can mean opportunities, but also means risks. In addition, there are also many large and stable shares active in the Metaverse such as Amazon and Meta. This also gives you exposure to other sectors in the tech industry.
In short: The Metaverse can be an interesting investment if you want to get in early in a new industry for the chance of exponential growth, but are willing to accept the associated risks.
Where to buy Metaverse ETFs?
Buy ETFs at an (online) broker. Buying an ETF is the same as buying a share. Don’t have an account with a broker yet? Then you can easily compare brokers using our tool.