The metaverse, a set of virtual, three-dimensional real-time rendered spaces that can be experienced regardless of a user’s physical location, provides an immersive experience with the opportunity to offer a new way of living through digital spaces.
While the metaverse is still in its early days, the potential for monetization is large in areas such as virtual reality, augmented reality, semiconductors, and creator platforms and economies. The opportunity may well exceed $1 trillion.
Some believe that the metaverse is an immersive, real-time, persistent economy that will be crucial to developing a thriving metaverse. The metaverse can be as much a place of economic development as it can be a place for leisure and entertainment. While it may take several years for fully formed, immersive metaverse experiences to become widely available, Global X believes that earlier stage investment opportunities are emerging already.
“Whether it’s playing video games with friends, buying digital items, or consuming media, the wide-range of potential uses offered by the metaverse makes it a possible successor to today’s internet. The metaverse’s foundational infrastructure is in place and companies are increasingly vocal about their participation in its advancement, both in word and capital commitment,” said Pedro Palandrani, director of research at Global X ETFs, in a news release. “With the launch of VR, Global X is leveraging its expertise in thematic investing to provide investors exposure to companies that are positioned to benefit from the development and commercialization of the metaverse.”
With an expense ratio of 0.50%, VR seeks to invest in companies involved in the following business activities: augmented/virtual/mixed reality and spatial computing, creator platforms, creator economy, and digital infrastructure/hardware.
Tracking the Global X Metaverse Index, the fund will join the Global X Thematic Growth suite of more than 35 ETFs and more than $18 billion in assets under management.
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