ETFs

BetaShares launches Metaverse ETF: Just a fancy Nasdaq

Thu 04 Aug 22, 2:26pm (AEST)
oculus rift VR headset
Source: Unsplash

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Key Points

  • The BetaShares Metaverse ETF's top holdings include Roblox, Nvidia and Facebook parent Meta
  • The ETF holds 32 companies, most of which are US-listed
  • Arguably, the ETF is just a fancy Nasdaq with blue-chip companies that have some metaverse side hustle

If there’s a trending sector that you want to invest in, Betashares probably has an ETF for it.

Thursday welcomes the Betashares Metaverse ETF (ASX: MTAV) after Solar (ASX: TANN) and Uranium (ASX: URNM) ETFs that were launched in May. 

The ETF provides investors exposure to a portfolio of leading global companies involved in the metaverse, including:

  • Providers of 3D modelling

  • Designers and manufacturers of virtual and augmented reality hardware

  • Providers of artificial intelligence services

  • Companies that sell advertising in the Metaverse 

  • Companies involved in digital currencies and assets in the Metaverse

“As the Metaverse evolves, consumers are expected to spend more and more time in virtual worlds, and businesses will increasingly have to establish and maintain a 3D, digital presence inside these worlds,” said Betashares.

Top 10 index exposures

The ETF holds 32 companies, most of them are US-listed. Here's a list of its top 10 holdings as at 31 July 2022.

Company

Weighting

Metaverse activities

Roblox

9.0%

Metaverse game development

Nvidia

6.7%

Hardware supporting metaverse applications

Unity Software

5.3%

Software solutions to create and run 3D content

Meta Platforms

5.1%

Metaverse hardware and software

Apple

4.7%

Augmented reality apps

Microsoft

4.5%

Microsoft Teams metaverse, hardware

Activision Blizzard

4.2%

Game developer positioned to enter the metaverse

Walt Disney

4.2%

Metaverse to build on streaming and theme park experiences

Electronic Arts

4.2%

Ventures into NFTs, blockchain and metaverse games

Sea Ltd

4.2%

Investments into AI gaming

Source: Betashares | Table: Market Index

It's basically the Nasdaq

In short - this 'Metaverse ETF' is just a fancy Nasdaq with a 0.69% per annum management fee slapped on top.

The idea of investing in the Metaverse is often to invest in risky, high growth companies that either sink or far outperform the market.

Though, this ETF is more like a list of top blue-chip US tech companies with some metaverse side hustle. But then again, the intention here is to provide investors with exposure to "leading global companies", not microcaps stocks.

For those interested in the latter, names like Vection Technologies (ASX: VR1), PlaySide Studios (ASX: PLY) and XReality Group (ASX: XRG) come to mind.

Metaverse ETF holdings and Nasdaq
Metaverse ETF top 5 holdings vs. Nasdaq (Source: TradingView)

 

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Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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