By now, I’m sure you’ve heard of the metaverse.
Or, as Meta Platforms’ Mark Zuckerberg puts it, the metaverse is “a sci-fi concept whereby humans put on some sort of headset or smart glasses that allows them to live, work and play in a virtual world much like the one depicted in the ‘Ready Player One’ movie,” as noted by CNBC.
While there have been some hiccups along the way, don’t count out the metaverse just yet.
According to International Data Corp., as noted by Barron’s, “global shipments for augmented reality and virtual reality headsets dropped about 13% in 2022, to 9.7 million. But IDC says shipments should rebound to 31.5% growth in 2023—with sustained growth of more than 30% through 2026.” Better, a new Accenture study says the metaverse could drive $1 trillion in commerce by 2025. That may be a stretch, but it’s worth waiting on.
“The metaverse as a continuum of technologies and human-centric experiences will usher in the next era of our digital lives and transform all aspects of business,” David Treat, senior managing director and co-lead of Accenture’s Metaverse Continuum business group, said in a statement. “Underpinning it all are opportunities for new products and services, digital assets, business models, and the technical capacity for conveying a sense of presence and expression.”
If the metaverse can get off the ground, keep an eye on stocks and ETFs, such as:
The Global X Metaverse ETF (VR)
One of the best ways to diversify with metaverse stocks, at less cost is with an ETF, like the Global X Metaverse ETF (VR).
With an expense ratio of 0.50%, the ETF invests in companies that are positioned to benefit from the development and commercialization of the Metaverse. This includes companies involved in the development of hardware and software that allow users to experience extended digital realities; creator platforms, where live streaming and other media content is shared in 3D simulations; creator economies, involving the development of digital payments.
Some of its top holdings include Nintendo, Netease Inc., Apple, Take-Two Interactive, NVIDIA Corp., Snap Inc., and Microsoft to name a few.
Another solid metaverse ETF to consider is the ProShares Metaverse ETF (VERS). With an expense ratio of 0.58%, the ETF gives investors access to the companies that are shaping the next frontier of digital interactions. Some of its top holdings include Amazon.com, Meta Platforms, Apple Inc., Alphabet Inc., Microsoft, Snap Inc., and NVIDIA Corp.
Meta Platforms (FB)
Meta Platforms may be one of the top ways to trade metaverse potential.
According to the company, “The metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world. It will let you share immersive experiences with other people even when you can’t be together — and do things together you couldn’t do in the physical world. It’s the next evolution in a long line of social technologies, and it’s ushering in a new chapter for our company.”
NVIDIA Corp. (NVDA)
The metaverse could offer a blockbuster opportunity for NVDA.
According to CNBC, “The infrastructure is key to the metaverse. Many companies will build it, but most of the revenues will be generated by the companies that provide the infrastructure and that’s where Nvidia comes in because they’re already a leader in artificial intelligence, and semiconductor space. Their chips and computer power are key to the metaverse.”
To help, the company is creating an Omniverse platform that could connect 3D virtual worlds. In addition, NVDA chips will likely play a crucial role in creating the processing power the metaverse will need to run.