iShares Metaverse ETF tracking STOXX index tops USD 100 mln

The iShares Metaverse UCITS ETF has surpassed USD 100 million in assets for the first time since launch in December 2022, driven by inflows and a strong performance from companies involved with the targeted theme. 

The fund tracks the STOXX® Global Metaverse, a thematic index that follows a unique patents-based stock selection methodology.

The strategy selects companies developing technologies related to the deployment and adoption of the Metaverse, including interactive virtual platforms, wearables, immersive applications, computer processing capabilities and digital twin. The underlying index was also introduced in 2022 to expand STOXX’s suite of solutions targeting the upside of a digital future. 

The iShares ETF has attracted more than USD 75 million in net inflows since inception, according to ETFBook. The index has gained 90% since the fund’s launch on December 7, 2022, outperforming the benchmark STOXX® Global Total Market by 46 percentage points over the period. 

Figure 1 : STOXX Global Metaverse index performance since ETF launch 

_{Source: STOXX. Total returns in USD from December 7, 2022, to October 18, 2024. Normalized at 100 at start of period.} 

The Metaverse is expected to become a trillion-dollar revenue paradigm, as more companies and consumers grow their presence in the virtual world, impacting industries such as e-commerce, online education, manufacturing and advertising. The Metaverse has been defined as ‘the next evolution of the internet and social networks’¹ and described as ‘the biggest new growth opportunity for several industries in the coming decade.’²

Partnership with AI firm EconSight

The STOXX Global Metaverse index uses EconSight’s³ patents database. The specialist analytics provider employs a sophisticated patent classification system and indicators that help identify companies with intellectual property in cutting-edge technologies associated with the Metaverse. 

For more on the selection methodology, visit our article from December 2022. 

While some people may quickly relate the Metaverse to gaming companies, the space offers increasingly diverse exposure to other business sectors, as more industries step into the virtual universe and introduce related services (Figure 2). 

Figure 2: STOXX Global Metaverse index top 10 holdings

_{Source: STOXX. Data as of September 30, 2024.} 

¹ Bloomberg Intelligence, ‘Metaverse may be $800 billion market, next tech platform,’ Dec. 1, 2021.
² McKinsey & Co., ‘Value creation in the metaverse,’ June 2022.
³ EconSight is a Swiss consulting company that specializes in measuring technological progress.