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The concept of Metaverse is an emerging one right now. The Metaverse is a shared virtual 3D world, or worlds, that are interactive and collaborative. It is facilitated by the use of virtual and augmented reality. The concept became extremely popular in 2021 particularly since Facebook rebranded itself as Meta Platforms .
With more and more companies from various industries joining the Meta bandwagon, it is clear that Metaverse will dictate the next generation of internet sooner or later. It offers a significant investment opportunity in the coming years.
Bloomberg Intelligence expects the market opportunity for the metaverse to reach $800 billion by 2024 from $500 billion in 2020, based on its analysis and Newzoo, IDC, PWC, Statista and Two Circles data. The primary market for online game makers and gaming hardware may top $400 billion in 2024 while the remaining business will come from live entertainment and social media. Gaming, AR, VR create $413 billion primary market of Metaverse, per Bloomberg.
Against this backdrop, below we highlight a few stocks and ETFs those are gearing up to capitalize on the metaverse boom. The stocks are all not pure-play tech stocks. So, investors who fear rising rate worries being a drag on the tech investing right now, may like these other industry plays.
ProShares launched a Metaverse ETF on Mar 15, 2022. ProShares’ VERS ETF tracks the Solactive Metaverse Theme Index, which relies on state-of-the-art algorithms designed to capture the metaverse investment opportunity as it evolves.
The index tracks 40 companies spanning a broad range of industries – from device makers to data processers, as well as social media, gaming, and other platforms that facilitate digital interaction. These companies are placing significant stakes in this virtual ground with the hope that its development represents the next phase of the internet. The fund charges 58 bps in fees.
Media & Entertainment takes about 30.67% of the fund weight, followed by semiconductor takes about 25% of VERS. Software & Services (17.78%) and Technology Hardware & Equipment (12.16%) round out the top four spots.
The underlying Ball Metaverse Index seeks to track the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies, or technological capabilities to enable the Metaverse, and benefit from its generated revenues. The 44-stock METV charges 59 bps in fees.
Computing Components (19.4%), Cloud Solutions (18.0%), Gaming Platform (17.5%), Social Network (14.1%) take the top four spots of the fund. Nvidia, Facebook, Roblox, Microsoft and Unity Softwae trake the top five spots in the fund.
Retail giant Walmart has plans to enter the field of highly immersive virtual reality/augmented reality (VR/AR) and Blockchain-based world. Zacks Rank #3 Walmart appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of NFTs, per a CNBC article.
Zacks Rank #3 Nike is acquiring a virtual sneaker and collectibles start-up, RTFKT. RTKFT boasts one-of-a-kind virtual products and experiences created by leveraging the latest in-game engines, non-fungible tokens, or NFTs, blockchain authentication and augmented reality. The move is part of the company’s digital transformation plan. The buyout is expected to expand NIKE’s base in the metaverse, with additional digital capabilities.
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2 ETFs & Stocks to Tap the Metaverse Boom
The concept of Metaverse is an emerging one right now. The Metaverse is a shared virtual 3D world, or worlds, that are interactive and collaborative. It is facilitated by the use of virtual and augmented reality. The concept became extremely popular in 2021 particularly since Facebook rebranded itself as Meta Platforms .
With more and more companies from various industries joining the Meta bandwagon, it is clear that Metaverse will dictate the next generation of internet sooner or later. It offers a significant investment opportunity in the coming years.
Bloomberg Intelligence expects the market opportunity for the metaverse to reach $800 billion by 2024 from $500 billion in 2020, based on its analysis and Newzoo, IDC, PWC, Statista and Two Circles data. The primary market for online game makers and gaming hardware may top $400 billion in 2024 while the remaining business will come from live entertainment and social media. Gaming, AR, VR create $413 billion primary market of Metaverse, per Bloomberg.
Against this backdrop, below we highlight a few stocks and ETFs those are gearing up to capitalize on the metaverse boom. The stocks are all not pure-play tech stocks. So, investors who fear rising rate worries being a drag on the tech investing right now, may like these other industry plays.
ETFs in Focus
ProShares Metaverse ETF (VERS - Free Report)
ProShares launched a Metaverse ETF on Mar 15, 2022. ProShares’ VERS ETF tracks the Solactive Metaverse Theme Index, which relies on state-of-the-art algorithms designed to capture the metaverse investment opportunity as it evolves.
The index tracks 40 companies spanning a broad range of industries – from device makers to data processers, as well as social media, gaming, and other platforms that facilitate digital interaction. These companies are placing significant stakes in this virtual ground with the hope that its development represents the next phase of the internet. The fund charges 58 bps in fees.
Media & Entertainment takes about 30.67% of the fund weight, followed by semiconductor takes about 25% of VERS. Software & Services (17.78%) and Technology Hardware & Equipment (12.16%) round out the top four spots.
Roundhill Ball Metaverse ETF (METV - Free Report)
The underlying Ball Metaverse Index seeks to track the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies, or technological capabilities to enable the Metaverse, and benefit from its generated revenues. The 44-stock METV charges 59 bps in fees.
Computing Components (19.4%), Cloud Solutions (18.0%), Gaming Platform (17.5%), Social Network (14.1%) take the top four spots of the fund. Nvidia, Facebook, Roblox, Microsoft and Unity Softwae trake the top five spots in the fund.
Stocks in Focus
Walmart (WMT - Free Report)
Retail giant Walmart has plans to enter the field of highly immersive virtual reality/augmented reality (VR/AR) and Blockchain-based world. Zacks Rank #3 Walmart appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of NFTs, per a CNBC article.
NIKE (NKE - Free Report)
Zacks Rank #3 Nike is acquiring a virtual sneaker and collectibles start-up, RTFKT. RTKFT boasts one-of-a-kind virtual products and experiences created by leveraging the latest in-game engines, non-fungible tokens, or NFTs, blockchain authentication and augmented reality. The move is part of the company’s digital transformation plan. The buyout is expected to expand NIKE’s base in the metaverse, with additional digital capabilities.