The metaverse is one of the hottest trends in the tech sector right now. While the term has many associated meanings, it is generally used to describe virtual worlds that implement technologies such as virtual reality and augmented reality. The metaverse blurs the lines between the real world and the virtual world, allowing users to enjoy immersive experiences that would be difficult or impossible to access in the real world.

While virtual worlds are nothing new per se, the concept of the metaverse made a major entry into the mainstream in October 2021, when Facebook announced that it would change its name to Meta to reflect the company’s focus on the metaverse. The metaverse is often touted as the next big thing, so many people are understandably interested in how they could invest in its potential future growth.

The main metaverse ETFs

Investors now have access to metaverse ETFs, which invest in a variety of companies with the goal of providing exposure to the growth of metaverse technology. This doesn’t necessarily mean just companies that are strictly focused on virtual or augmented reality; for example, many metaverse ETFs hold shares of companies like Apple and Alphabet.

In this article, we’ll take a look at the top ETFs in the metaverse and see how they stack up against each other. Please note that the data in this article is from January 6, 2023.

Roundhill Ball Metaverse ETF (METV)

The Roundhill Ball Metaverse ETF is a metaverse ETF offered by Roundhill Investments, and is designed to track the Ball Metaverse Index. The parent exchange for this ETF, which trades under the ticker symbol METV, is NYSE Arca. At the time of writing, it has an AUM of $378 million.

The Roundhill Ball Metaverse ETF has 51 different assets. The ETF’s largest holding is Roblox Corp, a video game developer known for its popular Roblox online gaming platform. Its other biggest holdings include tech industry heavyweights like Apple, Nvidia, Meta and Microsoft.

The Roundhill Ball Metaverse ETF was launched in June 2021. It has performed poorly since inception, which is not too surprising given the 2022 crash of tech stocks. As of January 6, 2023, the ETF is down 52% since its inception. The ETF has an expense ratio of 0.59%.

ProShares Metaverse ETF (VERS)

ProShares Metaverse ETF is a metaverse ETF offered by ProShares that is designed to track the Solactive Metaverse Topic Index. This index includes companies that generate at least 50% of their revenue from metaverse-related activities. The index limits the final weight of any individual company it contains to 4.5%.

The ProShares Metaverse ETF is listed on the NYSE Arca exchange under the symbol VERS and has an AUM of $5.34 million at the time of writing. The ETF, which launched in March 2022, is down 30% since its inception on January 6, 2023. The ProShares Metaverse ETF has an expense ratio of 0.58%.

At the time of writing, the largest holding in the ProShares Metaverse ETF is Roblox Corp. The other major holdings in the ETF include major technology stocks, including Apple, Microsoft, Qualcomm, and Alphabet.

Fidelity Metaverse ETF (FMET)

The Fidelity Metaverse ETF is offered by financial services giant Fidelity. The fund is designed to track Fidelity’s Metaverse Index. In accordance with the ETF’s stated objectives, it typically invests at least 80% in securities contained in the Fidelity Metaverse Index and Depository Receipts representing these securities.

At the time of writing, the largest holding in the Fidelity Metaverse ETF is Tencent, accounting for just under 5% of the fund’s assets. The fund’s other largest holdings include Alphabet, Apple, Nintendo and Adobe.

The ETF, which launched in April 2022, is down 15.5% since its inception. The Fidelity Metaverse ETF has an expense ratio of 0.39% and an AUM of $12 million as of January 6, 2023. It is listed on the Nasdaq stock exchange.

First Trust Indxx Metaverse ETF (ARVR)

The First Trust Indxx Metaverse ETF is listed on the Nasdaq stock exchange under the symbol ARVR and seeks to track the performance of the Indxx Metaverse Index.

The largest holdings in the First Trust Indxx Metaverse ETF are relatively unique compared to the other ETFs we’ve featured in this article. The ETF’s largest holding at the time of writing is Nexon, followed by Xiaomi, Netflix, Sony and Nvidia.

The ETF has $1.22 million in assets under management and an expense ratio of 0.70%. It is down 17.5% from the start.

Subversive Metaverse ETF (PUNK)

The Subversive Metaverse ETF is an actively managed ETF listed on the CBOE exchange. It was launched in January 2022 and aims to invest in infrastructure and application related companies from the metaverse.

Interestingly, the Subversive Metaverse ETF also aims to include a short position in Meta, which is capped at 5% of the fund’s AUM. According to materials on Subversive Investment’s websites, Meta is antithetical to “the principles of egalitarianism, democracy, sustainability, and facts.”

The largest holding of the Subversive Metaverse ETF (excluding cash and other holdings) is Agilent Technologies. Some of the fund’s other largest holdings include Alphabet, Intel, Apple and Microsoft.

The ETF has an expense ratio of 0.75%. As of January 6, 2023, the Subversive Metaverse ETF is down 33% since its inception.

Metaverse ETF Comparison Chart

The ETFs featured in this article take different approaches to provide investors with exposure to the metaverse sector. They also differ significantly in terms of expenses and AUM. Let’s take a look at a comparison chart to help you determine the best metaverse ETF for you:

The Bottom Line: Metaverse ETFs Have Underperformed So Far

As we can see, these metaverse stock ETFs have not performed well since their inception. They all launched relatively recently and were negatively affected by the sell-off in tech stocks. However, current tech stock prices could represent a solid opportunity for investors who have a positive long-term view of the metaverse sector.

The largest holdings of most metaverse stock ETFs are generally not companies that are heavily focused on the metaverse, but rather typically include stocks of large tech companies whose infrastructure and products are likely to underpin the metaverse.

If you’re looking to explore the metaverse yourself, check out our list of the best metaverse games. On CoinCodex, you can also explore many metaverse-related cryptocurrencies such as Ethereum, Polygon, and ApeCoin.