The Roundhill Ball Metaverse ETF is an exchange-traded fund that tracks the performance of the Ball Metaverse Index. Meanwhile, the Ball Metaverse Index is a bundle of shares of companies whose products relate to building the metaverse.
Accordingly, it is right to conclude that the Roundhill Ball Metaverse ETF (METV) offers investors a diversified and early investment portfolio in the metaverse industry.
By bringing shares of multiple companies under one asset, investors worry less about the potential failure of one company. However, if the entire metaverse industry fails, the METV ETF might also fail to deliver long-term profit.
Experts around the world see the metaverse as the future way of living. The metaverse is a term that describes a persistent and immersive 3D virtual world where activities are similar to that of the real world.
Companies worldwide are interested in the metaverse because all indicators point to it as the successor of the internet. During the covid-19 pandemic, it was proven that millions of people could work, school, and socialize remotely.
Therefore, businesses like Facebook (now Meta) began working on products that would deliver a genuine version of the metaverse. The Roundhill Ball Metaverse ETF allows you to invest in such businesses.
Who are the founders of Roundhill Ball Metaverse ETF?
The METV ETF, among others, is a product of Roundhill Investments – a New York-based investment adviser providing exchange-traded funds for specific sectors.
Will Hershey and Tim Maloney are the co-founders of Roundhill Investments. Before starting Roundhill, Will was the Head Trader at Yorkville Capital Management and a former financial analyst.
Similarly, Tim, the Chief Investment Officer of Roundhill Investments, worked as a Fixed Income trader at Wells Capital. Will and Tim are both graduates of Vanderbilt University. After graduating, the co-founders created a career footprint in finance. Thereafter, they started Roundhill Investments Inc in September 2018. In 2021, the company reported it has over $1 billion under its management.
The Roundhill Ball Metaverse was launched on June 30th, 2021. Mattew Ball maintains the Ball Metaverse Index along with the METV ETF. Currently, the fund has 58.8 million outstanding shares and is worth about $473 million.
Objectives of Roundhill Ball Metaverse ETF
The primary objective of the Roundhill Ball Metaverse ETF is to provide buyers with investments in companies building futuristic metaverse solutions. To achieve its aim, METV tracks companies whose products relate to the following classification:
Computing: these are companies whose products can supply computing power and infrastructure necessary to the success of the metaverse.
Networking: companies that build high bandwidth networks and provide fast and reliable internet connections.
Virtual Platforms: relate to gaming engines that are developing and operating immersive digital worlds, as well as companies that provide 3D worlds where individuals or businesses can explore and create experiences.
Interchange Standards: these are companies developing software programs that can facilitate interoperability among metaverse platforms. Also, products that can improve the metaverse framework are available today.
Payments: financial services that facilitate digital payment processes.
Content, Assets, and Identity Services: businesses that are creating and managing the sale, resale, and security of virtual assets and cryptocurrencies. Also, the list includes companies that collect and protect customer data and identity verification.
Hardware Devices: companies that produce and sell hardware devices for accessing and interacting in the metaverse.
Composition of Roundhill Ball Metaverse ETF
There are shares of 43 companies under the METV ETF. 19.7% of the companies are gaming platforms, while 18.7% are building computing components. Additionally, 16% provide cloud solutions while 14.3% are social networks, and 31% provide other services.
The companies and businesses are located in 7 countries across three continents. The regions include the United States, Sweden, China, Singapore, South Korea, Japan, and Taiwan. Nonetheless, the United States accounts for 81.5% (35) of the companies.
The Roundhill Ball Metaverse ETF contains small, medium, and large-cap companies. While 1% of the 43 companies are small-cap startups, 3% of them are mid-cap companies valued between $2-10 billion. Furthermore, 96% are large-cap companies worth over $10 billion.
Top 10 Holdings of the METV ETF
- Roblox Corporation
- Apple Inc
- NVIDIA Corporation
- Microsoft Corporation
- Unity Software Inc
- Meta Platforms Inc
- Snap Inc
- Amazon Communications Inc
- Sea Limited
- Autodesk Inc
Shares of Roblox Corporation account for 10.38% (most significant ETF weight) of the total underlying assets of the METV ETF.
How to buy Roundhill Ball Metaverse ETF
The Roundhill Ball Metaverse ETF is listed on the New York Stock Exchange with the ticker $METV. Accordingly, you can buy $METV on US-based brokerage platforms like Robinhood, Fidelity, Charles Schwab, Interactive Brokers, Vanguard, SoFi, etc.
Most online brokers will provide the latest information about an ETF on the trading page. Such information includes a price chart, the ETF performance, portfolio holdings, and the latest news about the fund.
If you wish to invest in METV ETF, the following are steps to buy the Roundhill Ball Metaverse ETF:
- Create an account with any of the brokers
- Complete the KYC registration if a broker requires it
- Then, deposit money into your trading account
- Visit the exchange section and search for METV under ETFs
- Finally, buy the fund at the desired price or the current price.
If you have little experience in trading assets, you may look for learning materials a broker provides. Such materials will fully explain how to deposit, buy and sell ETFs and how to withdraw.
Pros and Cons of Roundhill Ball Metaverse ETF
- The METV ETF is a sector ETF for an emerging industry. Thus, future growth in the metaverse sector means more significant returns for investors.
- 96% of companies in the METV ETF are large-cap companies less prone to liquidation or failure.
- METV ETF is available on major online brokers. So, anyone who can purchase U.S stocks can access it.
- The Roundhill Ball Metaverse ETF is not over-diversified. Thus, fund buyers can easily research the underlying companies.
- Most of the underlying companies in METV ETF are in the U.S. Sometimes, limiting an ETF to a particular country might prove disastrous if the country faces an economic downturn.
- The fund holds too many shares of large-cap companies, Consequently, it might not return a sizeable profit as investors will expect.
Investing in a metaverse exchange-traded fund is like investing in the future of the internet and social life. Nevertheless, ETF buyers should weigh the risks and potential rewards before investing.