BlackRock has launched the iShares Future Metaverse Tech and Communications ETF (NYSE Arca: IVRS), an exchange traded fund that invests in companies providing the technology, hardware, and software that enable the “metaverse” and virtual interactions. The fund begins trading on the NYSE Arca today.
IVRS seeks to track the investment results of the Morningstar Global Metaverse & Virtual Interaction Select Index, which measures the performance of equity securities issued by U.S. and non-U.S. companies that enable the metaverse and virtual interactions, as determined by Morningstar. The index provider defines the metaverse as a three-dimensional immersive digital world.
Morningstar evaluates companies based on five-year net profit and revenue projections as a producer or supplier with respect to six themes: virtual platforms, social media, gaming, 3D software, digital assets, and virtual and augmented reality. Top holdings as of February 16 include Facebook parent Meta, Nvidia Corp., and Apple.
While the fund does target companies that facilitate the use of payment solutions or digital assets in the metaverse or enhanced shared virtual spaces, it does not invest in cryptocurrencies or other digital assets directly or indirectly through the use of derivatives on such assets.
“iShares continues to build out its suite of thematic ETFs to help advisors build around the core of client portfolios,” said VettaFi’s Head of Research Todd Rosenbluth. “We have seen advisors use these diversified offerings to gain exposure to long-term trends.”
IVRS carries an expense ratio of 0.47%.