Growth equities may not be the ideal strategy in general for 2022, given that inflation and recession fears are forcing investors to play the market in safe mode. , is a great opportunity to seize high-growth opportunities at value-oriented prices.
One subsector in the tech industry that could offer potential alpha in the future is companies that have built their business models around the metaverse. It’s still a burgeoning concept, but very interesting when it comes to technology themes that could dominate the next decade or so.
“The Metaverse is more than just a buzzword. It’s facilitating new ways for people to interact online, and it’s now appearing in games and social platforms,” the Forbes article points out. “If you want to add exposure to this new type of asset to your investment portfolio, it can take time to understand all the ins and outs of the industry.”
Entire metaverse in one ETF
Speaking of exposure, ETF investors who spit on the potential Global X Metaverse ETF (VR)According to the fund’s description, VR aims to invest in companies that stand to benefit from the development and commercialization of the Metaverse.
Companies included in the fund include companies involved in developing hardware and software that allow users to experience an augmented digital reality; creator platforms that share live streaming and other media content in 3D simulations; The Creator Economy involved in development. Payments such as the creation and distribution of non-fungible tokens (NFTs) and other digital asset payment gateways. Also includes companies involved in the digital infrastructure/hardware space, such as semiconductors, cloud computing technologies, and 5G infrastructure that underpins digital media consumption.
- High growth potential: The global metaverse market is expected to grow by more than 50% from 2021 to 2022, surpassing $100 billion. Projections indicate that it could exceed $1.5 trillion by 2029, indicating significant room for growth.
- Expanding horizons: Early concepts of the metaverse focused on games and other forms of entertainment, but shopping and hybrid work use cases are emerging and have only scratched the surface of potential applications. suggests that it may not.
- An Open-ended Approach: The Metaverse is supported by a complex network of hardware and software providers, creators, and collaborators. VR invests accordingly and targets companies regardless of their sector or geographic classification.
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