Investment in Metaverse and Metaverse Technology has grown significantly over the past year, with tech giants such as Meta (FB) and Microsoft (MSFT) leading the way. According to ProShares Advisors Global Investment Strategist Simeon Hyman, the Metaverse presents an investment opportunity for individuals and institutions alike.
“Today you have an immersive but not quite interconnected metaverse,” Hyman told Yahoo Finance Live. “Half already [a trillion] The dollar is being built into the metaverse. It is also likely to double only in near-term terms. [with] Social media, interactive gaming and live music, before we even get to the interconnected piece on the other side. ,
Hyman joined Yahoo Finance Live to discuss the stock’s outlook as the Fed raises interest rates and invests in the metaverse. ProShares recently launched its Metaverse ETF (VERS), which is designed to provide investment access to companies shaping the digital frontier.
The VERS (pronounced “verse”) ETF tracks Solactive’s Metaverse Theme Index, which includes 40 companies in a wide range of industries — from data processors and software to social media and gaming — and tracks the Metaverse investment opportunity development. Uses algorithms for. Some of the companies tracked include Apple (AAPL), NVIDIA (NVDA), Roblox (RBLX), Microsoft, Meta, Snap Inc. (SNAP) and Unity (U).
“It’s really interesting, when you look at the basket of companies,” Hyman said. “It’s almost like a timeline of innovation for years, because there are companies like Microsoft, but there’s NVIDIA and of course there’s Meta, but more recently companies like Roblox and even more recently, a company like Unity. So it’s an emerging have the opportunity.”
ProShares joins the likes of Roundhill Investments and their Roundhill Ball Metaverse ETF (METV), allowing investors to participate in the financial performance of companies pushing into the metaverse.
A visitor tries out the “Metaverse Service” at the SK Telecom stand during GSMA’s 2022 Mobile World Congress (MWC) on February 28, 2022 in Barcelona, Spain. REUTERS/Albert Gea
Metaverse and rising interest rates
And with the Federal Reserve raising near-term interest rates by 25 basis points, with plans to pump the brakes further, if rising inflation is not pacified, uncertainty regarding metaverse investing remains as Investors begin to favor price over growth stocks.
However, Hyman believes that it is important to maintain some level of exposure to the growing tech sector for a portfolio to serve as a “hedge against inflation and rising rates.” In that sense, he said funds like ProShares’ Metaverse ETF are forward-looking, although the companies involved are already generating revenue within the Metaverse.
“And, you know, what we’ve found over the past decade is that some of these transformational thematic ideas can be very important parts of that growth piece of your equity portfolio,” he said.
Thomas Hum is a writer at Yahoo Finance. follow him on twitter @thomashumTV
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