ETF Spotlight Series: Invest in AR/VR with these Top 4 Metaverse ETFs

Apple is betting big on metaverse by launching Vision Pro VR. You can invest in metaverse too with these 4 metaverse ETFs.

Apple's launch of the "Vision Pro VR Headset" has made Metaverse the talk of the town. Tim Cook, Apple’s CEO, believes that the next major advancement in technology, following the introduction of Mac for personal computing and iPhone for mobile computing, will come with the Vision Pro VR headset, which will pave the way for spatial computing.

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Apple is not alone. Meta (formerly Facebook) has pumped $36B into its metaverse and VR business since 2019. And JP Morgan believes that the metaverse will represent a $1 Trillion annual revenue opportunity.

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Brief Overview: Metaverse, AR, VR

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Imagine you have two special types of glasses. With Virtual Reality, or VR, you put on one pair of glasses and get whisked away to a whole new world that isn't real but looks and feels like it is. It's like stepping into a video game or a movie! You can explore different places, meet imaginary characters, and go on adventures.

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Now, with Augmented Reality, or AR, you put on the other pair of glasses and still see the real world around you, but with some extra magical things added to it. It's like having a secret superpower to make things appear that others can't see. You can have virtual creatures popping up on your table or see fun information floating in the air. Pokemon Go is a great example of AR.

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While AR adds digital things to the real world, and VR takes you to a completely virtual world, the Metaverse combines them both and connects everything together. In the Metaverse, you can wear special glasses or use devices to see and interact with a mix of real and virtual things, making it feel like you're truly inside a magical universe.

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How to invest in Metaverse

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Investing in metaverse ETFs through dollar cost averaging (DCA) can be a reliable and stress-free strategy to enter the world of the metaverse.

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By consistently investing a fixed amount over time, regardless of price fluctuations, you can accumulate more shares when prices are low and fewer shares when prices are high, potentially reducing your average cost per share in the long run.

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Moreover, investing in a metaverse ETF provides diversification and convenience, allowing you to access a variety of metaverse-related securities and spread your investment risk across multiple assets. Here are the top four metaverse ETFs we are uncovering in this ETF Spotlight Series.

Top Four Metaverse ETFs:

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FMET: The New Kid On The Block

Full name: Fidelity Metaverse ETF
1-Yr Return: 10.3% DCA: 4.85%
Size: $14M in assets under management
Number of holdings: 63
Fees: 0.39% (average ETF cost is 0.16%)
Summary: FMET, established in 2022, consists of a portfolio comprising “a global universe of companies that develop, manufacture, distribute, or sell products and services related to Metaverse.” Unsurprisingly, its top holdings are Google, Apple, Adobe, Meta, and NVIDIA.

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METV: The Biggest Metaverse ETF 🐘

Full name: Roundhill Ball Metaverse ETF
1-Yr Return: 19.8% DCA: 10.15%
Size: $485M in assets under management
Number of holdings: 50
Fees: 0.59%
Summary: The biggest metaverse ETF in terms of AUM, the fund's portfolio is concentrated in its top 5 holdings, namely NVIDIA, Apple, Meta, Microsoft, and Roblox, which collectively make up 38% of its investments.

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VERS: Revenue focused 💰

Full name: ProShares Metaverse ETF
1-Yr Return: 12.3% DCA: 6.42%
Size: $6.5M in assets under management
Number of holdings: 40
Fees: 0.58%
Summary: VERS tracks the Solactive Metaverse Theme Index, which includes companies that generate at least 50% of their revenue from metaverse-related activities.

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Share’s MetaVerse: The Phenomenal Performer 🚀

1-Yr DCA return: 33.9%
Number of holdings: 9
Fees: free
Summary: Share's MetaVerse stands out as the sole cost-free ETF in the lineup, yet it also boasts the highest one-year DCA return. Unlike other metaverse ETFs that encompass approximately 50 companies, Share's MetaVerse deliberately limits its holdings to just 9 stocks. This deliberate approach helps prevent overdiversification, which could diminish profits while not significantly impacting volatility.

With the Share Invest App, users can easily set up recurring investments in any metaverse ETF, enabling dollar cost averaging into the metaverse within seconds. Additionally, the DCA calculator serves as a useful tool, allowing you to assemble a basket of metaverse stocks or ETFs by simply dragging and dropping them, and then simulating the potential returns.

Disclaimer: Investing involves risk and past performance does not ensure future results. The Share Invest mobile app is offered by Share Invest Inc., with brokerage services provided by Alpaca Securities LLC, and clearing services by Velox Clearing LLC and Vision Financial Markets LLC, all members of the Securities Investor Protection Corporation. Share and Alpaca are not affiliated and not responsible for each other's liabilities. Fractional share trading availability does not imply a recommendation or endorsement of securities, and transactions are executed through market orders during normal hours. For further inquiries, contact hi@tryshare.app.