After social media giant Facebook changed its name to Meta, the world went crazy over the idea behind this change, Metaverse. It’s the next big thing in the evolution of the internet. The metaverse adds many new elements, such as a Avatar, 3D virtual environment and augmented reality, that amplifies users’ experiences and interactions with the web. Tech companies are diving into this emerging technology to stay ahead in the race. And so do the investors who want to make money by investing in the companies that are working in this field. Roundhill Ball Metaverse, or The Roundhill Ball Metaverse ETF, is an investment instrument designed to expose investors to the growing world of the metaverse. The Roundhill Ball Metaverse ETF follows the performance and changes of the Ball Metaverse Index (METV Index). This article will answer “What is Roundhill Ball Metaverse ETF” and whether investing in this ETF is profitable.
Roundhill Metaverse ETF
Before getting into the Roundhill Ball Metaverse, let’s understand the concept of ETF first. Exchange-Traded Fund, in short ETF, is a type of mutual fund that allows you to buy a basket of securities/shares/bonds, etc., instead of buying each one separately. ETFs are traded on the stock exchange like any other investment instrument and can be bought and sold just like stocks.
The Roundhill Ball Metaverse ETF (METV ETF) mimics the performance of the Ball Metaverse Index, which is the first index designed to track the global performance of the companies building metaverse. The Ball Metaverse Index, launched on 06/21/2021, comprises 44 leading companies actively involved in the metaverse. The list includes major tech companies such as Meta Platforms, Nvidia Corporations, Microsoft Corp, and Apple Inc, to name a few.
The Roundhill Ball Metaverse ETF is specifically designed to enable investors to be a part of this next version of the internet and does not miss the astronomical return these stocks could yield in the future. The Roundhill Ball Metaverse ETF was launched on 06/30/2021 on New York Stock Exchange.
Types of Companies included in Ball Metaverse Index
The Ball Metaverse Index tracks the performance of globally listed companies that are currently actively participating in building the ecosystem for the metaverse. Below is the list of these companies.
Networking: Companies that provide high bandwidth data services to consumers.
Compute Semi-conductor and microprocessor suppliers that give computing power support.
Virtual Platform: Companies like Nvidia are developing a virtual 3D simulation where users could meet, socialize and participate in other activities.
Payments: Payment is a vital aspect of developing an economically flourishing Metaverse. This segment includes companies like PayPal that support digital transactions and financial services.
Hardware: Devices such as VR headsets are an essential component of the Metaverse ecosystem. Companies building several gadgets that amplify the Metaverse experience fall in this segment.
Apart from the classification mentioned above, the Ball Metaverse Index also contains companies that offer content management and asset services.
Portfolio Composition
| Segment | Weightage |
| Gaming Platform | 19.7% |
| Computing component | 18.7% |
| Cloud Solutions | 16% |
| Social Network | 14.3% |
| Others | 31.4% |
The Roundhill Ball Metaverse ETF Performance
Despite having some of the biggest and fastest-growing companies in its basket, the Roundhill Ball Metaverse ETF’s performance has been negative since its launch. The price of this ETF has declined by nearly 38% so far.
The ETF was launched at a Net Asset Value (NAV) of $15, and the NAV as of 05/06/2022 is $9.25. A plunge in the share price of Meta platform, Nvidia, and other tech giants included in the basket is a reason behind the negative return of this EFT.
Should you invest in Roundhill Ball Metaverse ETF?
The metaverse is a booming market. The Meta Platforms, formerly Facebook, has recently invested a staggering $10 billion to develop AR, VR hardware, software, and content. Also, this segment is expected to grow by 43.3% CAGR.
Considering the whopping growth of this next generation of internet, massive growth in the share of companies involved in building this 3D virtual world is expected. According to a report from Emergence research, the Metaverse market size could increase to $1.6 Trillion in 2030.
The last year was not very fruitful for the Roundball Metaverse ETF; however, the rapid growth of the metaverse could yield a good return in the near future.
In a Nutshell
With the growing popularity of this emerging technology, the tech leaders are working to tap this multi-trillion dollar industry and reposition their products and services to synch with the metaverse.
The Roundhill Ball Metaverse ETF is designed to give the investor exposure to the blooming metaverse industry by following the performance Ball Metaverse Index, which comprises leading companies involved in building the next version of the Internet, Metaverse. It gives the opportunity to investors to directly invest in top metaverse related companies easily and tap the exponential growth of this market.