Summary of ETFs on the metaverse before their imminent arrival in Europe

Metaverse ETFs have become the hottest commodity in the ETF block since Mark Zuckerberg, founder and CEO of Facebook, announced the company’s strategic push into this emerging ecosystem on October 28. On Google, the term ETF metaverse has been one of the most searched for by ETF enthusiasts, who have been hoping to jump on the topic that is destined to become the internet’s killer.

In 2021, investors invested $990 million in US-based Metaverse ETFs, including $980 million in the first-ever Metaverse ETF, the Roundhill Ball Metaverse ETF (METV, formerly META). Since revamping Facebook in the fourth quarter, METV has seen its assets grow from $163 million (October 31, 2021) to $932 million (in two months!).

METV seeks to track the Ball Metaverse Index and invests in globally listed companies participating in the Metaverse, such as social media companies, gaming platforms, IT components or cloud solution providers – among others. Almost 80% of the portfolio is located in the United States, while the rest comes mainly from Asia. The fund currently owns 45 hubs, including Nvidia (8.92%), Microsoft (8.08%), Meta Platforms (6.57%), Apple (4.64%), (4.5%) and Taiwan Semiconductor (4.39%) – on for example. few. METV has a total expense ratio of 0.59% and is primarily traded on the Nasdaq.

The success of Roundhill’s Metaverse ETF has prompted other ETF issuers in the United States to launch their own products and cater to the growing audience of investors interested in the Metaverse. The Fount Metaverse ETF (MTVR) launched on NYSE Arca on October 27, followed by Canada’s first Metaverse ETF, the actively managed Evolve Metaverse ETF (MESH), which launched on November 24, followed shortly afterwards by the Horizons Global Metaverse Index ETF ( MTAV). On January 27, 2022, Subversive Capital Advisors launched the actively managed Subversive Metaverse ETF (PUNK) on the Cboe BZX exchange. The fund will invest in companies operating in one or more of the seven layers of Metaverse: Expertise, Discovery, Creator Economics, Spatial Computing, Decentralization, Human, Interface and Infrastructure. Unlike most Metaverse funds, PUNK deploys a short selling strategy for Meta Platforms stocks.

Explaining why Bloomberg’s approach is such, Michael Auerbach, founder of Subversive Capital Advisors, said, “Facebook appears to be the antithesis of what real consumers want their digital future to look like.”

The metaverse craze has hit Asia – which is now home to over 10 metaverse ETFs. As of January 19, 2022, 8 Metaverse ETFs are listed in South Korea, such as the Mirae Asset Tiger Fn Metaverse ETF (400970), Samsung KODEX K-Metaverse Active ETF (401470), and KB KBSTAR iSelect Metaverse ETF (401170). The eight funds combined have attracted more than $1 billion in inflows, according to data from Samsung Asset Management.

Thailand’s first metaverse fund, MFC Metaverse Equity (M-META), was launched by Bangkok-based MFC Asset Management in December last year. The fund invests at least 80% of its net asset value in the Roundhill Ball Metaverse ETF.

Hong Kong, CSOP AM launched the CSOP Metaverse Concept ETF (3034.HK) on February 21, 2022. This actively managed fund invests primarily in US-listed companies that directly or indirectly provide products or services that contribute to the development of the Metaverse. As of March 14, 2022, the major names in the fund were Meta Platforms (6.75%), Nvidia (6.26%), and Apple Inc. (6.12%), Advanced Micro Devices (5.96%), and Sony Group (5.64%).

Europe, a newcomer to the Metaverse ETF, will welcome several new launches this year. In a joint press release, ETC Group and HANetf announced the imminent launch of the first Metaverse ETF in Europe. The new Metaverse ETF (whose name and fee will be revealed later) will be listed on the London Stock Exchange in March 2022 and will be available for sale across Europe.

The fund will track the Solactive ETC Group Global Metaverse Index, which provides an opportunity to learn about the metaverse industry, including companies active in VR/AR, 3D graphics, semiconductors, wireless broadband communications, online gaming, and video streaming — among industries and topics. other.

Hoping to emulate its success in the US, Roundhill Investments has revealed that it will launch a European equivalent of the US-listed METV Index ETF – the Roundhill Ball Metaverse UCITS ETF (METV). The fund is expected to list on the German Stock Exchange later this month with a total expenditure ratio (TER) of 0.59% and is considering a listing on the London Stock Exchange.

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