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BetaShares launches Metaverse ETF: Just a fancy Nasdaq
By
Kerry Sun
Thu 04 Aug 22, 2:26pm (AEDT)
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 top 5 holdings vs. Nasdaq (Source: TradingView)
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