While hedging bets in volatile markets, keep an eye on this ‘new’ metaverse ETF
While market volatility is driven by fears of inflation, rate hikes, and geopolitical conflicts, there may be regions in this virtual reality worth investigating in the future. The metaverse, for example, is rife with financial opportunities. Some compare it to the internet in the 1990s or 2000s, and have high expectations for it. According to Morgan Stanely, the total addressable market (TAM) for metaverse is estimated to be $8 trillion in terms of consumer spending in the United States. Furthermore, the metaverse appears to be mentioned frequently in the company’s memos and transcripts. Until recently, the Roundhill Ball Metaverse exchange-traded fund (NYSEARCA: METV) was the sole metaverse exchange-traded fund (ETF); nonetheless, METV was the first ETF designed specifically for metaverse investing. METV details The fund now manages $528 million in assets and has 45 holdings in its portfolio, including large-cap technology companies. It’s logical that no single firm can build the metaverse because it’s more than a video game. It’s a collection of scenarios, applications, and communication channels in the digital realm. METV steps in to round out the offer by securing the best in reality and augmented reality, chip and headset manufacturers, game industry developers, cloud platforms, and network infrastructure suppliers. The performance of the fund The fund began operations on June 30, 2021, and has subsequently lost over 45 percent due to the overall environment for tech companies in 2022. Following a high of $17 in late November, the price fell to an all-time low of $8 in mid-May, and is now trading at $9.11. To keep their strong growth rates, big technological businesses need a new market, and it appears that they’ve found it in the metaverse. Overall, METV may be an appealing ETF for long-term investors who want to invest in potential technology companies but are wary of the current market situation. Disclaimer: This website’s information should not be construed as investment advice. Investing is a risky business and it is not to be taken lightly.