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    Surfing Metaverse ETFs for Opportunities in 2024

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    The Metaverse has begun to take center stage in the digital environment and has turned out to be more than just a fashionable technology concept. Now that generative AI is getting a lot of attention, the focus is on the growing interest in the metaverse.

    Mark Zuckerberg, Founder and CEO of META Q4 2023 Conference Callsaid the tech giant has made significant investments in both AI and the Metaverse, which are integral parts of the company's long-term vision for the next 10 years.

    According to Nasdaq, Metaverse hype is rapidly growing among public companies, as evidenced by a notable increase in mentions on quarterly conference calls after Facebook rebranded it as Meta Platforms. That's what it means.

    Expectations for Metaverse market expansion

    According to Earthweb, as cited by CompTIA, the global metaverse market is expected to grow at a CAGR of 47.2% to reach $426.9 billion by 2027. According to Statista estimates, Metaverse's revenue is expected to achieve a CAGR of 36.7%, resulting in the market being of expected size. It is expected to reach $490.4 billion by 2030.

    According to CompTIA, Bloomberg predicts that the value of the Metaverse will reach $800 billion by 2024. McKinsey & Company has the most bullish outlook for the Metaverse market, estimating that the Metaverse economy will reach a valuation of $5 trillion by 2030.

    Market reach assessment

    According to the Bureau of StatisticsBy 2030, 2.63 billion users are expected to participate in the Metaverse market, and user penetration is expected to reach 39.7% in 2030 from 14.6% in 2024.

    Metaverse usage is steadily increasing day by day. According to CompTIA, virtual concerts have already become a massive phenomenon in the Metaverse, attracting tens of millions of fans who eagerly watch performances by artists like Ariana Grande and Travis Scott. Furthermore, McKinsey predicts that by 2030, more than 50% of live events will move to the metaverse, and that the impact will extend to more than 80% of commerce.

    According to Gartner, as cited by CompTIA, an estimated 25% of individuals will spend at least one hour each day engaging in activities within the metaverse by 2026. Meanwhile, by the same year, 30% of the world's organizations had products and services customized for the Metaverse.

    Opportunities by field:

    Many industries stand to take advantage of the tremendous growth and innovation potential that the metaverse offers. The Metaverse provides a dynamic environment in which industries can thrive, from gaming and healthcare to banking, manufacturing, and other sectors.

    health care

    The influence of the metaverse in medicine has expanded rapidly in recent years. The impact of emerging technologies in the healthcare sector is expected to grow at a CAGR of 34% and the valuation will reach $44.44 billion by 2028. According to research and market.

    However, this field is still in its development stage. by Boston Consulting Group According to the survey, approximately 77% of healthcare providers and 94% of payers expect their engagement with the metaverse to increase in the coming years.

    manufacturing industry

    According to Industry WeekAccording to research, the revenue generated by the industrial metaverse is estimated to reach $100 billion by 2030, and making the industrial metaverse more efficient and economical will boost the sector.

    The global manufacturing metaverse market is projected to reach $337 billion by 2033 at a CAGR of 38.60%, with North America showing the highest growth rate. According to previous research.

    game

    Watecestimates that the impact of the metaverse on the gaming industry will be at a CAGR of 40% from 2023 to 2030. North America leads the gaming metaverse market due to early adoption of the technology and dominance of major players in the space such as Microsoft and Meta. . With significant investments from companies such as Tencent and Sony, the Asia-Pacific region has emerged as a contender to watch.

    According to the Bureau of Statisticsthe user base of the Metaverse Gaming market is expected to reach 943.3 million people by 2030, with user penetration jumping from 4.7% in 2024 to 14.2% by 2030.

    Featured ETFs

    Below, we introduce several Metaverse ETFs to help investors take advantage of the optimistic outlook for emerging technology.

    Round Hill Ball Metaverse ETF (METV)

    Roundhill Ball Metaverse ETF is a globally traded company that engages in activities or provides products, services, technology, or technical capabilities that enable the Metaverse and benefit from the revenues generated therefrom. It follows the Ball Metaverse Index, which aims to track the performance of stocks in the market.

    Roundhill Ball Metaverse ETF attracts an asset base of $451.2 million and has an annual fee of 0.59%. This fund mainly allocates 7.66% share to his META, followed by Roblox RBLX and NVIDIA NVDA with 7.39% and his 7.19% share respectively. METV has increased about 21.70% in the past three months.

    ProShares Metaverse ETF (verse)

    ProShares Metaverse ETF follows the Solactive Metaverse Theme Index, which is comprised of innovative technology companies that provide Metaverse-related products and services.

    The ProShares Metaverse ETF has accumulated an asset base of $5.5 million and has an annual fee of 0.58%. This fund has a major allocation to his NVDA with a share of 4.81%, followed by his META and Alphabet GOOGL with shares of 4.55% and 4.54% respectively. VERS has gained about 21.29% in the past three months.

    Fidelity Metaverse ETF (FMET)

    The Fidelity Metaverse ETF follows the Fidelity Metaverse Index, which is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute and sell products and services related to establishing and enabling the Metaverse.

    The Fidelity Metaverse ETF has attracted an asset base of $28.1 million and has an annual fee of 0.39%. This fund is primarily allocated to his NVDA with a share of 5.70%, followed by his META and GOOGL with 5.16% and 4.57% respectively. FMET has gained about 18.06% in the past three months.

    First Trust Index Metaverse ETF (ARVR)

    First Trust Indxx Metaverse ETF follows the Indxx Metaverse Index and is a rules-based investment in the next generation of the Internet, where creators have the potential to build the next chapter of human interaction through immersive experiences in three-dimensional virtual spaces. To do.

    First Trust Indxx Metaverse ETF has accumulated an asset base of $1.8 million and has an annual fee of 0.70%. The fund is primarily allocated to his NVDA with a share of 3.81%, followed by his META with a share of 3.68%. AVRV has increased about 19.25% in the past three months.

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    NVIDIA Corporation (NVDA): Free stock analysis report

    Alphabet Inc. (GOOGL): Free stock price analysis report

    First Trust Indxx Metaverse ETF (ARVR): ETF Research Report

    Roblox Corporation (RBLX): Free Stock Analysis Report

    Meta Platforms, Inc. (META): Free stock price analysis report

    Round Hill Ball Metaverse ETF (METV): ETF Research Report

    ProShares Metaverse ETF (VERS): ETF Research Report

    Fidelity Metaverse ETF (FMET): ETF Research Report

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    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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