ProShares launches third metaverse ETF
17:48, 18 March 2022
US-based exchange-traded fund (ETF) provider ProShares has launched its first ETF tracking stocks expected to form the new virtual world known as the metaverse.
ProShares VERS Metaverse ETF NAV - Photo: Capital.com with data from ProSharesProShares VERS Metaverse ETF began trading this week at a $40 (£30.40) net asset value (NAV) and was last quoted at $43.24, ProShares reported. The fund tracks the Solactive Metaverse Theme Index, a pool of 40 stocks shaping the future of the virtual world. ProShares VERS Metaverse ETF trades on the NYSE Arca exchange under the ticker VERS.
“In the not-too-distant future, anything from a work meeting to time with family could take place in the metaverse, and VERS provides investors an easy way to access the potential growth,” said ProShares executive director of thematic investing Scott Helfstein in a release.
Solactive Metaverse Theme Index Exposures as of 10 Mar. 2022 - Photo: Capital.com with data by ProSharesCompanies in the Solactive Index include names most would associate with cutting edge technology – one-quarter of the index is semiconductor stocks – but it also has some exposure to the retail, consumer apparel, real estate and health-care sectors.
For example, aside from tech staples Apple, Meta Platforms, Microsoft and NVIDIA, home furnishings retailer Williams-Sonoma represents 0.41% of the index’s exposure.
Company | Ticker | Weight | Shares held | Market Value |
| Apple | APPL | 8.24% | 2,662 | $427,570.44 |
Meta Platforms | FB | 6.36% | 1,587 | $329,842.08 |
| Alphabet | GOOG | 6.35% | 123 | $329.243.94 |
| NVIDIA | NVDA | 6.30% | 1,320 | $326,911.20 |
| Microsoft | MSFT | 6.28% | 1,103 | $326,627.66 |
| Himax Technologies | HIMX | 5.18% | 23.400 | $268,632.00 |
| Amazon | AMZN | 4.97% | 82 | $257,871.96 |
| Snap | SNAP | 3.23% | 4,930 | $167,472.10 |
| Vuzix | VUZI | 3.14% | 24,536 | $162,673.68 |
| PTC | PTC | 2.93% | 1.371 | $151,810.83 |
Top 10 holdings as of 17 March 2022
Solactive Metaverse Theme Index
Solactive Metaverse Theme Index 17 March 2017 - 17 Mar. 2022 - Photo: SolactiveETF requirements
To qualify for ProShares VERS, a company must generate 50% minimum of its revenue from metaverse-related activities. Index provider Solactive uses automated scanning of regulatory filings, made with the US Securities and Exchange Commission, for example, and assigns a score reflecting its activity relating to the metaverse, ProShares explained in the N-1 registration statement.
Company scores are then weighted, with higher scores receiving a higher weighting in the index.
“The ten largest companies by market capitalisation also receive additional weight,” ProShares added. To be eligible for the ProShares VERS ETF, a company must trade its stock over the NYSE or Nasdaq exchanges and meet undisclosed capitalisation and FactSet requirements.
The top 10 companies in the fund represent roughly 53% of the exposure, according to data provided in the marketing materials.
“The metaverse may be as impactful on society as the arrival of the internet or the mobile phone, and the investment opportunity has the potential to be just as compelling,” said ProShares founder and CEO Michael Sapir in the same release.
ProShares is the third metaverse ETF
Roundhill Ball Metaverse ETF - Photo: KoyfinProShares VERS is the third such metaverse-focussed ETF to hit the market, and the second in the US. Last June, Roundhill Investments launched the Roundhill Ball Metaverse ETF and Horizon Global launched its Horizons Global Metaverse Index ETF.
Horizons Global Metaverse ETF (TSX: MTAV) - Photo: KoyfinRoundhill Ball, which launched over the NYSE Arca at a $15.07 NAV, closed Friday at $11.57. Horizon Global, which launched over the Canadian TSX exchange at a $25 NAV, closed Friday at $20.22.
