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Incoming reports indicate that Blackrock, the world’s largest asset manager, recently issued a metaverse-themed ETF, joining several others in the quest.
Blackrock’s metaverse thematic ETF
Blackrock, the largest multinational investment company globally, has been moving toward the digital asset landscape and web3. The latest of the company’s moves is the recent launch of a metaverse thematic exchange-traded fund designed to help capitalize on the prospect of the metaverse.
The new iShares Future Metaverse Tech and Communications ETF (IVRS US) was recently listed on NYSE Arca using an expense ratio of 0.47%. Reports indicate that the fund was created on Feb. 14.
This newly launched metaverse-focused equity fund targets companies focusing on further developments within the metaverse ecosystem. This fund is linked to Morningstar Global Metaverse & Virtual Interaction Select Index.
When writing this report, data indicated that the fund had only accumulated a net asset of about $5.02 million as of Feb. 17, with a daily volume of 410.
Moreover, the data from Feb. 17 shows that about 72.4% of the Index’s total constituted US-listed stocks. Other countries well represented in the fund include China (10.2%), South Korea (3.6%), France (5.1%), and Japan (8.2%). Furthermore, data indicate that most of the allocation in the IT industry is directed toward stocks like Meta Platforms, Apple, Nvidia, Roblox, and several more.
Last October, rumors of Blackrock’s new metaverse-focused ETF surfaced. This is just one of the several already launched metaverse thematic ETFs in the US. Roundhill Ball Metaverse ETF is currently the largest of the lot.
$300 million market cap requirement
According to reports, companies seeking to participate in the fund must have a $300 million market cap, with trading volumes of at least $2 million. The new Blackrock fund adopts a rating system, where companies listed will be assigned at least one of 6 relevance scores related to the metaverse sub-theme.
The six scores under the metaverse sub-theme include Wearable Technology and VR/AR, Enhanced Social Media, 3D Rendering and Simulation Software, Metaverse Platforms, Immersive Gaming, and Digital Assets & Payments.
The scores assess the firm’s potential to benefit from any sub-theme. This assessment looks into the five-year prospect for the company’s revenue from the sub-theme. Furthermore, depending on the revenue exposure level to subthemes, the Index will rate either tier one or tier 2 companies. However, based on the report, this index fund will be rebalanced every end of the year, in December.