Today I am going to share a fantastic way for the beginning investor to get started, or for someone who may want to invest in the Metaverse but may be unsure where to start. This way is through Roundhill Ball's Metaverse ETF ticker: META
What is an EFT?
An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types (Investopedia).
ETFs are very popular and often outperform retail investors, like myself... There are many reasons to invest in ETF's such as it will essentially manage itself. You don't have to do anything besides buy, hold and sell.
However, it is also important to understand the negatives of investing in an ETF such as META. Some factors to consider are that you don't have control of which companies make up the ETF or the percentage.
In this case, Roundhill investment determines the percentage of each company owned, and in return, they charge a fee or yearly expense ratio which is common among any ETF. META's expense ratio is .75%. This is not something you have to pay for directly. This expense is "baked in" the price of the ETF.
What stocks make up META?
META currently invests in 44 separate companies at various percentages. META's Top 10 holdings as of 1/11/2022 consist of:
8.42% META PLATFORMS INC FB
8.32% NVIDIA CORPORATION NVDA
6.71% ROBLOX CORP RBLX
6.59% MICROSOFT CORP MSFT
5.40% UNITY SOFTWARE INC U
4.69% SNAP INC SNAP
4.09% TAIWAN SEMICONDUCTOR TSM
3.86% APPLE INC AAPL
3.80% AUTODESK INC ADSK
3.75% AMAZON COM INC AMZN
More information regarding META can be found here.
Personally, I do not currently own this ETF. However, I understand the upside potential for the tech industry enough which makes this ETF very appealing. It is also one of my favorite invest and forget candidates. My biggest reasons for not owning any shares of META are:
The expense ratio. At 0.75 the expense ratio is fairly minimal. However, with higher amount of money invested and over time, it adds up.
The companies. When it comes to less risk and more safety, the more companies the better. However, more companies limit any upside potential. This really isn't a bad thing, in matter of fact, it's good, but just does not currently fit my current investment strategy. I actually agree with every company on this list and can understand the weighting.
All in all, I would highly recommend the META ETF to a beginning investor or someone that wants exposure to the future of technology/ the Metaverse. The pricing is very attractive and, in my opinion, its at a major discount.
As always, none of this is financial advise or recommendations. I highly encourage you to do your own research before making any financial decisions and have a great day!
Disclaimer: I do have exposure to many of the stocks within META.