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Metaverse ETF:
Investing into the Future

The metaverse is a computer domain in virtual reality where people may interact with 3D objects. It has gone from an obscure, theoretical idea to being variously described as everything from the evolution of virtual reality (VR) to the next iteration of the internet.

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The Opportunity

For those wanting to benefit from a nascent industry in its early development stages with expected wide-scale, there exist long-term investment opportunities in the infrastructure and services comprising the metaverse.

$8.3trn opportunity

Metaverse-related businesses combined is expected to create an $8.3 trillion opportunity in the United States alone. [Morgan Stanley]

Game changer products

Products including virtual/augented reality glasses and 5G technology will drive huge Metaverse growth in 2022 and beyond, not only for tech firms but also consumer, advertising and leisure stocks. [Blackrock]

Metaverse to be adopted on a daily basis

By 2026, 25% of people globally are expected to spend at least one hour per day in the Metaverse for work, shopping, education, social media and entertainment. [Gartner]

A new job economy

Meta Platforms has 1/6 of its workforce (10,000 staff) currently working on metaverse products and is also creating 10,000 new metaverse-related jobs in Europe.

A new dimension for live events and experiences

Why sell just 3,000 physical seats to a live concert or sporting event when the same 3D audio and visual experience can be ported to VR and sold to 300,000? Or 3 million?

Cross-sector adoption

Some of the world's largest corporations are already filing for trademarks, for e.g. operating virtual restaurants or virtual stores featuring actual or virtual goods [Forbes]

Metaverse Research Primer

research
Metaverse Research Primer illustration

Solactive ETC Group
Global Metaverse Index

Powered by Solactive

Global Index Universe

Designed to measure the performance of global publicly listed companies with business operations in metaverse related technologies. Solactive determines the composition of the Index by screening available information such as financial news, business profiles, and company publications.

All companies that form part of the index must be involved in:

  • Augmented/virtual reality space;
  • Creator economy;
  • Digital infrastructure;
  • Digital marketplace;
  • The gaming industry;
  • Digital payments companies.

Focus on Pure Play & Growth

The Metaverse is a very young industry with many new and potentially not yet established companies operating in the fields of augmented and virtual reality, 3D graphics, semiconductors, high-speed wireless communications, online gaming, video gaming, video streaming, blockchain technologies including NFTs and digital land and connected cloud file and data storage.

Therefore, a $1 billion market cap rule was introduced into the index in order to make sure that eligible companies have a solid market capitalization, but given expected growth of the sector, this rule will allow smaller companies to enter the index. That way, investors will benefit from early-stage growth opportunities.

Composition & Rebalance

Companies in the index must have:

  • Listing on a regulated exchange in selected jurisdictions;
  • Headquartered in one of the countries that are part of the Developed Markets and Emerging Markets as defined by the Solactive Country Classification Framework;
  • Have a minimum market capitalisation of USD$1,000,000,000 (non-index components) and USD USD$800,000,000 for (index components);
  • Have a minimum average daily volume of USD$2,000,000 (non-index components) and USD USD$1,600,000 for (index components);

Excluded are:

  • Casinos/Gaming;
  • Electronics/Appliance Stores;
  • Food Retail;
  • Motor Vehicles.

ETC Group
Global Metaverse
UCITS ETF

An equity UCITS fund to access the metaverse sector with particular focus on pure play metaverse companies

Augmented/Virtual Reality VR/AR

Companies engaged in the production of technologies, software, and hardware that allow consumers and businesses to interact in immersive extended realities. This includes the production of wearable devices, specialized optics and displays, as well as, audio and sensory equipment. These companies are expected to allow end-users to transcend physical spaces and fully immerse themselves into the metaverse.

Snap Unity Technologies Apple facebook Roblox

Creator Economy

Companies that offer consumer software tools, social media, and other distribution platforms that make it possible for individual creators to create, share, and transact directly with their consumers. This includes the provision of programs and services used for editing and sharing user generated content. These companies are expected to unlock the value chain of the creator economy in the metaverse.

Adobe Autodesk The Walt Disney Alphabet Inc

Digital Infrastructure

Companies engaged in the development, operation and distribution of technologies, services and hardware related to network infrastructure, big data, digital platforms and cloud computing

f5 Nutanix AMD Nvidia

Digital Marketplace

Companies engaged in the provision of a digital economy including platforms and services to facilitate virtual interactions and online commerce, as well as the integration of social network platforms. These companies are expected to play a key role in the digital economy of the metaverse.

jd com seek Shopify Tencent Alibaba Group

Gaming

Companies involved in the provision, development, and distribution of technologies, infrastructure and hardware used for the creation, streaming, and consumption of online gaming and e-sports content. This includes the development of online games, the production of gaming equipment, as well as the provision of services and platforms necessary for the functioning of the gaming ecosystem expected to be central to the metaverse.

Nintendo Skillz Sony Sea Group Capcom

Digital Payments

Companies engaged in the development, distribution and integration of infrastructure, software, and applications related to digital payment services and blockchain technologies. This includes digital payment processes, platforms, including fiat currency “on- ramps” to decentralized finance (DeFi) applications. These companies are expected to provide the payment rails for the metaverse.

Square Inc PayPal Coinbase GMO Inc class A shares

ETF Trading Venues

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