BlackRock Launches Metaverse ETF
Major asset management company, BlackRock, launched an exchange-traded fund (ETF) on February 14th, 2023, focused on the metaverse called the ‘Ishares Future Metaverse Tech and Communications ETF,’ and is currently trading on the New York Stock Exchange. An ETF is a type of investment fund that trades on stock exchanges like a stock, providing investors with exposure to a basket of underlying assets such as stocks, bonds, or commodities. They are designed to track the performance of an index or asset class and are often used as a low-cost, diversified investment option for investors.
BlackRock is a global investment management company based out of New York that provides a range of investment and technology services to clients worldwide. Its services include managing investments in equities, fixed income, and alternative assets and providing risk management and advisory solutions. The company strongly focuses on environmental, social, and governance considerations and recently launched several sustainable investment products.
The move surprises some people since the sector hasn’t achieved mass adoption, but industry insiders would likely say it’s a perfect time. In fact, BlackRock could be considered late to the game since companies like Roundhill Ball, ProShares, and Fidelity have already launched their own ETFs. This indicates that now is likely the time to research and get involved with the metaverse. The technology associated with virtual and augmented realities is extensive and evolves exceedingly fast. The opportunities aren’t limited to headsets and software; Blackrock will also be looking at virtual platforms, digital assets, gaming, and social media projects to maximize exposure to the potential growth of the space.
BlackRock believes that its ongoing involvement, coupled with its rules-based index, will enable them to adjust to the evolving market and provide them with a deeper understanding of the future of the metaverse. The 41 companies that are currently held in the fund are a clear indication of this. The most significant allocations are Meta Platforms (META), Apple (AAPL), Nvidia (NVDA), Netease (NTES), and Roblox (RBLX).
Notes from the Prospectus:
BlackRock’s ETF will track the investment results of its underlying index (Morningstar Global Metaverse & Virtual Interaction Select). The results measure the performance of US and non-US companies based on five-year net profit and revenue projections concerning six themes:
