5 Best Metaverse ETFs To Buy

3. HORIZONS GLOBAL METAVERSE INDEX (TSX:MTAV.TO)

HORIZONS GLOBAL METAVERSE INDEX (TSX:MTAV.TO) is an exchange traded fund that seeks to replicate the performance of the Solactive Global Metaverse Index, which consists of companies that are expected to grow and support the development of the metaverse. HORIZONS GLOBAL METAVERSE INDEX (TSX:MTAV.TO) is a relatively new ETF that was listed on the Toronto Stock Exchange on November 26, 2021. 

Companies in the portfolio of HORIZONS GLOBAL METAVERSE INDEX (TSX:MTAV.TO) belong to multiple industries including digital marketplaces, digital infrastructure, digital payments, creator economies, AR/VR, and gaming. One of the top holdings of HORIZONS GLOBAL METAVERSE INDEX (TSX:MTAV.TO) is Visa Inc. (NYSE:V), a fintech and payments company that headed into the metaverse with its first purchase of non-fungible tokens worth $150,000 back in August 2021. 

Visa Inc. (NYSE:V) is a top stock pick of smart investors as of Q3 2021, with 143 elite funds holding combined stakes worth over $26 billion in the company. TCI Fund Management held the biggest position in Visa Inc. (NYSE:V) at the end of September 2021, with roughly 20 million shares amounting to $4.4 billion. 

Here is what Weitz Investment Management, Inc. has to say about Visa Inc. (NYSE:V) in its Q4 2021 investor letter:

“Reports to investors usually focus on the winners that prove the worthiness of the managers. It’s possible that we’ve been guilty of that on occasion, despite our best efforts to accurately convey what has worked and what hasn’t. This time, though, we are going to celebrate the great businesses we own that “went nowhere” in 2021. In a generally expensive market facing potentially strong headwinds in 2022, we find it very encouraging to own a number of proven winners whose stocks have been “resting” for the last year or so. They will not necessarily save us from markdowns during broad-based corrections, but they are companies that we believe can survive and grow business value through almost anything. They are the kinds of businesses that allow us to sleep well at night and not be tempted to sell at the wrong time. Here are some examples:

Established payments companies have been out of favor recently. Cross-border payments have been depressed with COVID disrupting international travel. These types of payments are particularly lucrative for Visa and their absence has impacted earnings. Further, we believe investors have overestimated the negative competitive impact of new fintech companies that have emerged over the past few years. Many of these “disrupters” depend on the Visa “rails” over which electronic payments travel, and these wily incumbents have a way of acquiring, copying or otherwise competing with upstarts.”