Global X Joins Metaverse ETF Wave

Three issuers have launched funds targeting this theme in the past week.

Global X became the third issuer behind Fidelity and First Trust in just over a week to launch a metaverse ETF, adding another competitor in an already-packed theme. 

The Global X Metaverse ETF (VR) debuted on the Nasdaq on Thursday with an expense ratio of 0.50%. 

VR uses an in-house index that holds companies deemed to be generating half their revenues from augmented reality computing, social networking platforms or hardware underpinning the digital infrastructure for the metaverse. 

Companies that are pre-revenue or diversified tech firms that are deemed to have a significant amount of revenue from metaverse activities may also be included in the index. 

The fund’s top holdings lean significantly toward video game companies, with Nintendo, South Korean game publisher Nexon, Take-Two Interactive and Zynga among its 10 largest positions. It holds 9.48% of its weight in Nintendo, giving the fund the largest weighted exposure to the company among U.S.-listed ETFs. 

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

VR launched days after the First Trust Indxx Metaverse ETF (ARVR) and the Fidelity Metaverse ETF (FMET) debuted, and is the seventh metaverse ETF to list in the U.S. 

The Roundhill Ball Metaverse ETF (METV) remains the largest ETF in the theme by assets, with nearly $640 million, due in part to its first-mover advantage into the space. 

Contact Dan Mika at [email protected], and follow him on Twitter