The concept of Metaverse is emerging right now. 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 companies from various industries joining the Meta bandwagon, it is clear that Metaverse will dictate the next generation of the Internet sooner or later. It offers a significant investment opportunity in the coming years.

“Technological innovation deployed in the construction of the ongoing initiatives to build a metaverse is laying the foundation for a new digital frontier. In this regard, bold new ventures are leaning into the future to create a more dynamic and exciting era of opportunity in the digital space. These areas, in particular, are ripe for investor exposure, especially due to their potential application in a variety of industries,” per First Trust Advisors.

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 ETFs gearing up to capitalize on the metaverse boom.

ETFs in Focus

ProShares Metaverse ETF (VERS Quick QuoteVERS - Free Report)

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 with 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 Quick QuoteMETV - 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 43-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. No stock accounts for more than  8% of the fund.

First Trust Indxx Metaverse ETF (ARVR)

The 38-stock fund, which recently made a debut, looks to track the price and yield of the Indxx Metaverse Index, which is designed to track the performance of companies involved in offering technologies that assist in creating the Metaverse.

Electronic Arts Inc., STMicroelectronics NV and Intel hold the top three spots in the fund. No stock accounts for more than 3.62% of the portfolio. Entertainment (30.8%), Semiconductors & Semiconductor Equipment (29.7%) and Software (12.38%) are the top three industries of the fund.

Fidelity Metaverse ETF (FMET)

The fund hit the market on Apr 19, 2022 and it looks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Metaverse Index, which is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.