Morgan Stanley analysts predict the Metaverse has the potential to generate $8.3 trillion in total consumer expenditure in the US alone.

BlackRock, one of the largest ETF issuers in the US, has launched a thematic equity fund targeting companies worldwide that are shaping the development of the metaverse, a future iteration of the internet comprising persistent, shared, 3D virtual spaces linked into a perceived virtual universe. The iShares Future Metaverse Tech and Communications ETF (NYSEARCA: IVRS) has been listed with an expense ratio of 0.47%. (ETF Strategy)

The fund is linked to the Morningstar Global Metaverse & Virtual Interaction Select Index, which selects its constituents from a universe of stocks from developed and emerging markets, excluding India. To be eligible for inclusion, a company must have a market capitalization above $300m and an average daily trading volume greater than $2m. The index selects all ‘Tier 1’ companies, which are defined as firms with an aggregate exposure score of 3 or 4 across six metaverse-related sub-themes, and an overall revenue exposure of at least 25% towards the metaverse theme. If less than 50 stocks have been selected, the index fills the shortfall by selecting ‘Tier 2’ companies.

The metaverse has already attracted billions of dollars of investment and has the potential to generate $8.3 trillion in total consumer expenditure in the US alone, depending on the level of disruption.

The fund is the seventh thematic ETF in the US to target the development of the metaverse, which is expected to transform long-standing industries and markets such as finance, banking, retail, education, health, and fitness, among many others.

Its top 10 holdings as on February 17, 2023 were as follows:

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