The Metaverse market size has been forecasted to grow to a whooping $828.95B in 2028. It was worth about $48B in 2020.
Metaverse ETFs allow us to gain exposure to the metaverse investing theme, without needing to research individual companies. You can now choose from 5 Metaverse ETFs:
Comparison of Metaverse ETFs
| Roundhill Ball Metaverse ETF | Fount Metaverse ETF | Evolve Metaverse ETF | Horizons Global Metaverse Index ETF | First Trust Indxx Metaverse ETF | |
|---|---|---|---|---|---|
| Ticker | METV | MTVR | MESH | MTAV | ARVR |
| Why invest? | The OG Metaverse ETF | Geographically diversified Metaverse ETF constructed by AI. | Actively managed Metaverse ETF | Metaverse ETF with exposure to wide range of industries, selected by AI. | Metaverse ETF with exposure to larger companies involved in Internet Protocol, Platforms, Payment, Optics or Semiconductor and Hardware. |
| Underlying Index | Ball Metaverse Index (BALLMETA) | Fount Metaverse Index | Actively managed by Horizons ETFs | Solactive Global Metaverse Index | Indxx Global Metaverse Index |
| Inception Date | 30 Jun 2021 | 27 Oct 2021 | 24 Nov 2021 | 26 Nov 2021 | 19 April 2022 |
| Fund size (AUM) | $489M | $7.2M | $10 M | $3.92M | $2.6M |
| Expense Ratio (p.a.) [aka fees] | 0.75% | 0.70% | 0.60% (+ sales tax) | 0.65% | 0.70% |
| Tracking Error | 0.24% | TBU | TBU | TBU | TBU |
| Exchange | NYSE Arca (USD) | NYSE Arca (USD) | Toronto Stock Exchange (CAD) | Toronto Stock Exchange (CAD) | Nasdaq (USD) TBC |
| No. of holdings | 43 | 52 | 30 | 50 | 40 |
| Top 3 holdings | Roblox: 10.84% Apple: 7.94% Nvidia: 7.08% | Apple: 11.65% Alphabet: 4.12% Meta Platforms: 3.59% | Coinbase: 4.45% Matterport: 3.95% Roblox: 3.77% | Unity: 5.28% Snap: 4.97% Meta Platforms: 4.69% | Netflix: 3.65% STMicroelectronics: 3.52% Amphenol Corp: 3.45% |
| Where to buy? | Tiger Brokers, moomoo, Interactiv eBrokers, TD Ameritrade, FSMOne | Tiger Brokers, moomoo, Interactive Brokers, FSMOne | Interactive Brokers | Interactive Brokers | Interactive Brokers |
| Lot Size | 1 | 1 | 100 | 100 | 100 |
Update: As of September 2022, it’s worth noting that with exception of MESH, the Fund size/ AUM of all the ETFs listed here has fallen due to the unfriendly macro environment.
How much is the metaverse worth?
According to Emergen Research, the global metaverse market could be worth $828.95B in 2028.
Crypto fund, Grayscale stated in their research report that “the market opportunity for bringing the Metaverse to life may be worth over $1 trillion in annual revenue”.
Every financial research companies report slightly different estimates in growth. However, they all seem to agree that the metaverse will grow tremendously in the coming years.
The Metaverse Boom
Since Facebook rebranded themselves as ‘Meta Platforms’ in October 2021, interest in the ‘metaverse’ concept has heated up tremendously.
It’s especially evident when we saw online search trends for the term ‘metaverse’ spiked:
The initial hype was then fuelled by news about crazy sales volumes (> $100M) of virtual land were recorded in dapps like Decentraland and Sandbox. Even the singer JJ Lin bought some virtual land for S$123,000!
As inflation kicked in this year, we’ve seen the interest in the metaverse dwindle as with most tech related sectors:
Why invest in metaverse ETFs?
If your head is spinning right now, you’re not alone.
The good news is that you don’t have to understand what is the metaverse in order to profit from the metaverse investing theme. There are now 4 (+1 upcoming) metaverse ETFs that investors can choose from to gain exposure to a basket of stocks involved in the development of the Metaverse.
In this article, I’ll compare the available Metaverse ETFs, take a look at their objectives, holdings and fees, in order to help you decide on the best Metaverse ETF for your portfolio. But first,
Best Metaverse ETFs
Metaverse ETFs are exchange traded funds designed to help investors gain exposure to the metaverse investing theme. As interest in the metaverse grows, more ETF managers are jumping onto the bandwagon and we will likely to see more metaverse ETFs being listed in future.
If you’re a busy investor who wants to capture some growth without having to keep up with the many developments within the metaverse space, these are your options:
1) Roundhill Ball Metaverse ETF (METV)
The OG metaverse ETF.
Roundhill Investments define the metaverse “a successor to the current internet that will be interoperable, persistent, synchronous, open to unlimited participants with a fully functioning economy, and an experience that spans the virtual and ‘real’ world.” And the Roundhill Ball Metaverse ETF was the first ETF designed to offer investors exposure to the metaverse.
Being the first to market, the META ETF has captured a good market size and has the largest AUM of all the Metaverse ETFs. (It also enjoyed some good publicity thanks to Mark Zuckerberg’s “Meta” rebranding announcement.)
Key information for Roundhill Ball Metaverse ETF:
- Stock Code: METV (Roundhill Ball Metaverse ETF started trading as METV as of 31 Jan 2022)
- Currency: USD
- Exchange: NYSE Arca
- Inception date: 30 June 2021
- Performance (YTD): -43.48%
- Expense Ratio: 0.75%
The METV ETF tracks the “Ball Metaverse Index” by Matthew Ball, a fund manager who extensively about the metaverse and its developments. The Ball Metaverse Index focuses on potential Metaverse enablers.
At the point of update, the Roundhill Ball Metaverse ETF has 43 holdings and these are the top 10:
Top 10 holdings in Roundhill Ball Metaverse ETF
| Company | Weightage |
| Roblox Corp (RBLX) | 10.84% |
| Apple (AAPL) | 7.94% |
| Nvidia Corporation (NVDA) | 7.08% |
| Unity Software (U) | 7.05% |
| Microsoft (MSFT) | 6.42% |
| Meta Platforms (FB) | 6.24% |
| Amazon (AMZN) | 4.11% |
| Snap (SNAP) | 3.79% |
| Autodesk (ASDK) | 3.55% |
| Coinbase Global (COIN) | 3.34% |
Their holdings are heavily weighted in US stocks, but provide investors with a good mix of industries that could be involved in the metaverse:
The METV ETF is very accessible for investors, you can buy it in single lots on discount brokers like Tiger Brokers and moomoo and online brokers like InteractiveBrokers, FSMOne, TD Ameritrade. If your existing brokerage has access to the NYSE Acra exchange, it is highly likely that you can buy it there.
2) Fount Metaverse ETF (MTVR)
The Fount Metaverse ETF (MTVR) focuses on companies that could be position to benefit from the expected growth in metaverse technology. Managed by a Korean investment company, its underlying index uses AI to determine a list of potential companies!
Key information for Fount Metaverse ETF:
- Stock Code: MTVR
- Currency: USD
- Exchange: NYSE Arca
- Inception date: 27 October 2021
- Performance (YTD): -28.03%
- Expense Ratio: 0.70%
The MTVR ETF tracks the Fount Metaverse Index.
It’s interesting to note that it uses a proprietary artificial intelligence algorithm to forecast 1 year forward revenue of metaverse technology related services and products. Companies with the potential to derive more than 50% of their revenue from metaverse related services are identified and the top 50 would make up the index.
At the point of writing, the Fount Metaverse ETF has 52 holdings and these are the top 10:
Top 10 holdings in Fount Metaverse ETF
| Company | Weightage |
| Apple (AAPL) | 11.65% |
| Alphabet (GOOGL) | 4.12% |
| Meta Platforms (FB) | 3.59% |
| Roblox Corp (RBLX) | 2.51% |
| Adobe (ADBE) | 2.49% |
| Pinterest (PINS) | 2.22% |
| Draftkings (DKNG) | 2.19% |
| Activision Blizzard (ATVI) | 2.18% |
| Oriental Land (4661 JP) | 2.08% |
| Haichang Hldg (2255 HK) | 2.02% |
There is no official geographical breakdown of their holdings, I took the headquarters of each of their holdings and got the approximate geographical breakdown:
It is noticeable that the MTVR ETF is more diverse in terms of their geographical breakdown. However, only time would tell if the MTVR ETF would outperform the rest in the long run.
Similar to META, the MTVR ETF is rather accessible for investors. You can buy it in single lots on discount brokers like Tiger Brokers and moomoo and online brokers like InteractiveBrokers, FSMOne. If your existing brokerage has access to the NYSE Acra exchange, it is highly likely that you can buy it there.
3) Evolve Metaverse ETF (MESH)
Canada’s first metaverse ETF, the Evolve Metaverse ETF (MESH) is an actively managed ETF that trades on the Toronto Stock Exchange (TSX). It seeks long term capital appreciation by investing in companies that are involved in the development of the metaverse.
Key information for Evolve Metaverse ETF:
- Stock Code: MESH
- Currency: CAD
- Exchange: Toronto Stock Exchange
- Inception date: 24 Nov 2021
- Performance (YTD): -37.29%
- Expense Ratio: 0.60% (+ applicable sales taxes)
The MESH ETF is the only actively managed Metaverse ETF in this article. This means it doesn’t passively follow an underlying index. This shouldn’t make too much differences as we are still in the early stage of the metaverse development and there isn’t a single authoritative benchmark index for the industry yet.
At the point of writing, the Evolve Metaverse ETF has 30 holdings and these are the top 10:
Top 10 holdings in Evolve Metaverse ETF
| Company | Weightage |
| Coinbase (COIN) | 4.45% |
| Matterport (MTTR) | 3.95% |
| Roblox (RBLX) | 3.77% |
| Amazon (AMZN) | 3.76% |
| Walt Disney (DIS) | 3.74% |
| Autodesk (ADSK) | 3.66% |
| Apple (AAPL) | 3.62% |
| Unity Software (U) | 3.59% |
| eXp World Holdings (EXPI) | 3.47% |
| Advanced Micro Devices (AMD) | 3.46% |
The MESH ETF has a strong focus on US Tech stocks that could be involved in the metaverse:
As a relatively young ETF listed on the TSX, the MESH ETF is not as accessible to investors at the point of writing, I only managed to find it available on InteractiveBrokers.
Do note that you may need to undergo additional KYC to gain access to ETFs on the TSX. You should check with your broker if you are interested in it.
4) Horizons Global Metaverse Index ETF (MTAV)
Listed just two days after the MESH ETF is the Horizons Global Metaverse Index ETF (MTAV) which provides investors with exposure to companies that could potentially benefit from developing and supporting the functioning of the Metaverse.
Key information for Horizons Global Metaverse Index ETF:
- Stock Code: MTAV
- Currency: CAD
- Exchange: Toronto Stock Exchange
- Inception date: 26 Nov 2021
- Performance (YTD): -31.80%
- Expense Ratio: 0.55% (+ applicable sales taxes)
The MTAV ETF tracks the Solactive Global Metaverse Index which uses proprietary AI to screen and identify global leaders in the metaverse.
According to the Index guidelines, their proprietary AI, ARTIS is a natural language processing algorithm. It screens publicly available information (eg. News, business profiles, publications) and identify companies which are likely to be exposed or involved in the development or support of the Metaverse, using keywords that describe six key categories. You can read more about their selection mechanism here.
At the point of writing, the Horizons Global Metaverse Index ETF has about 50 holdings and these are the top 10:
Top 10 holdings in Horizons Global Metaverse Index ETF
| Company | Weightage |
| Unity Software (U) | 5.28% |
| Snap (SNAP) | 4.97% |
| Meta Platforms (META) | 4.69% |
| Apple Inc (AAPL) | 4.46% |
| PTC Inc (PTC) | 4.29% |
| Roblox (RBLX) | 4.2% |
| Nvidia (NVDA) | 3.83% |
| Pinduoduo (PDD) | 2.24% |
| Trade Desk Inc (TTD) | 2.14% |
| Global-E Online (GLBE) | 2.13% |
The MTAV ETF has a strong focus on US stocks in a diversified selection of sectors:
Likewise, as a relatively young ETF, the MTAV ETF is not as accessible to investors at the point of writing, I only managed to find it available on InteractiveBrokers. You should check with your broker if you are interested in it.
5) First Trust Indxx Metaverse ETF
The latest player in the metaverse ETF scene is First Trust which filed its application to list a metaverse-themed ETF on 7 Dec 2021. It was officially listed on 19 April 2022.
Key information for First Trust Indxx Metaverse ETF:
- Stock Code: ARVR
- Currency: USD
- Exchange: Nasdaq
- Inception date: 19 April 2022
- Performance (Past 3 months): -2%
- Expense Ratio: 0.70%
The First Trust Indxx limits its selection to listed companies with:
- Minimum Market Cap: $1B
- Six month average daily over turn value: at least $5M
- Minimum free float: 10%
- Derives at least 50% of its revenue or devote 50% of its assets to the Metaverse
Also, all companies must be involved in one of the following:
- Internet Protocol (IP) and Contents
- Platforms
- Payment
- Optics & Display
- Semiconductor, Hardware and 5G
At the point of writing, the First Trust Indxx Metaverse ETF has about 40 holdings and these are the top 10:
Top 10 holdings in First Trust Indxx Metaverse ETF
| Company | Weightage |
| Netflix (NFLX) | 3.65% |
| STMicroelectronics (STM) | 3.52% |
| Amphenol Corp (APH) | 3.45% |
| Microchip Technology (MCHP) | 3.43% |
| Synopsys (SNPS) | 3.35% |
| Apple (AAPL) | 3.32% |
| Advanced Micro Devices (AMD) | 3.31% |
| Taxes Instruments (TXN) | 3.3% |
| Taiwan Semiconductor Manufacturing Company (TSM) | 3.19% |
| Electronic Arts (EA) | 3.12% |
It gives investors access to these industries within the Metaverse space:
The First Trust Indxx Metaverse ETF is relatively new. You can get access to it via Interactive Brokers.
How to buy Metaverse ETFs?
Metaverse ETFs are listed on stock exchanges and you can buy them just like any stock.
That said, you’ll need to check if your broker has access to the stock exchanges that these ETFs are listed on.
Who should invest in Metaverse ETFs?
Metaverse ETFs help investors gain exposure to a basket of metaverse stocks without the hassle of researching deeply into each company. These are great for investors who are bullish about the metaverse and want to ride its growth but:
- don’t want to research and pick their own metaverse stocks
- don’t want to build a portfolio specific to the metaverse investment theme
- don’t have time to keep up with developments in the metaverse
Risks
- Metaverse is still in its infancy
If history repeats itself, the eventual winners of the metaverse race may not be the current players.
This means that potential winners may not come from a basket of listed stocks – they could be startups or emerging crypto projects which these metaverse ETFs do not provide exposure to.
The Metaverse concept is still novel, there’s no telling how it would evolve.
- Lack of historical data
Having listed in 2021 and 2022, all Metaverse ETFs are young with limited historical performance data.
Instead, you’re betting on the success of the metaverse and the ability of the ETFs to pick companies that would become leaders in the future metaverse.
- Short term volatility
As the metaverse evolves quickly, these ETFs may not perform spectacularly in the short term. The underlying stocks may also be affected by macro-economic conditions.
Which is the best Metaverse ETF to invest in?
Each of the metaverse ETFs listed here offer slightly different portfolios that are built using a range of methodologies. As a quick summary, here’s how I would select the best Metaverse ETF for my portfolio:
If you want access to the largest (and hence most liquid) metaverse ETF, go for the OG – Roundhill Ball Metaverse ETF (METV).
If you prefer exposure to a diverse portfolio of companies across geography, Fount Metaverse ETF (MTVR) may be suitable for you. The Horizons Global Metaverse Index ETF (MTAV) would provide you with a portfolio of metaverse stocks across a diversified range of industries instead.
Lastly, if you believe that fund managers can pick winning metaverse stocks in the long run, then the actively managed Evolve Metaverse ETF (MESH) may be something to consider.
If you think you can build a portfolio that would outperform these Metaverse ETFs, here are some inspiration for you to start from: