In this article, we discuss 5 best metaverse ETFs to buy. If you want our detailed analysis of the metaverse and these ETFs, go directly to 10 Best Metaverse ETFs To Buy.
5. Roundhill Ball Metaverse ETF (NYSE:META)
Roundhill Ball Metaverse ETF (NYSE:META) is designed to allow investors exposure to the metaverse by mirroring the performance of the Ball Metaverse Index, which consists of a portfolio of global companies that are actively involved in the metaverse. These companies belong to multiple industries including computing, networking, virtual platforms, payments, and hardware.
Roblox Corporation (NYSE:RBLX) is a major component of Roundhill Ball Metaverse ETF (NYSE:META)’s portfolio. Roblox Corporation (NYSE:RBLX) has already developed virtual worlds where millions of people socialize, play video games, and participate in the digital economy. The company is one of the best bets in the metaverse.
Roblox Corporation (NYSE:RBLX) is a popular stock among elite hedge funds. In Q3 2021, 50 funds were bullish on Roblox Corporation (NYSE:RBLX), with collective stakes amounting to $3.5 billion. Tiger Global Management was the biggest stakeholder of the company in the third quarter, with 17.4 million shares worth $1.3 billion.
Here is what Jefferies Group has to say about Roblox Corporation (NYSE:RBLX) in its Q3 2021 investor letter:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new multi-billion dollar companies will rise as the Metaverse becomes more mature.
Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition…(click here to read the full text)
