about 2 years ago • 1 min
Social media giant Facebook’s decision to rebranded itself as Meta three months ago has seen an understandable surge in interest in the metaverse, a potential next iteration of the internet that might see more and more of us hang out in online worlds.
And that surge has been mirrored in the world of investing, with assets invested in metaverse-focused exchange traded funds (ETFs) climbing to more than $2 billion from just a few tens of millions. The most popular ETF in the space, the Roundhill Ball Metaverse ETF, has claimed $822 million alone.
But last week a new actively managed ETF joined the party, with one big difference: the Subversive Metaverse ETF (ticker: PUNK; expense ratio 0.75%) refuses to invest in Meta. In fact, it even uses up to 1% of funds to sell Meta short – profiting if Meta declines.
“This emerging technological and human advancement requires responsible companies dedicated to the principles of egalitarianism, democracy, sustainability, and facts,” reckons Subversive Capital, the firm behind the ETF. Meta “is antithetical to those principals (sic) and any market cap above zero is a direct assault on liberal democracy and the survival of our planet.”
As you can see in the chart, the fund’s biggest holdings include crypto exchange Coinbase, chipmaker Nvidia, and game platform Roblox. Since its launch on Thursday, the ETF has climbed 7% – but has so far only taken $1.2 million in investor assets.
As an aside, Roundhill’s metaverse ETF is in the process of changing its ticker from META to METV. After Meta postponed plans to change its own ticker from FB to MVRS, I wouldn’t be surprised if the company does a deal with Roundhill to take on the META ticker before long.
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