The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

BlackRock
BlackRock has launched a new exchange-traded fund that taps into the “metaverse.”

The iShares Metaverse UCITS ETF [MTAV] will track the STOXX Global Metaverse Index. The fund is listed on Euronext, with a total expense ratio of 0.50 per cent.

The term “metaverse” applies to an immersive virtual world which mixes digital and physical interactions. In the eyes of its proponents, the metaverse is the next frontier of the digital world. Metaverse technology constitutes an interplay between aspects of both augmented reality (the integration of digital information with the user’s environment in real time) and virtual reality (the computer-generated simulation of a three-dimensional image or environment that can be interacted with).

According to data cited by BlackRock, the metaverse technology marketplace is developing at a rapid pace, with an expected value of $800 million by 2025, and an expected market size of $4 to 5 trillion by 2030. The desire to capitalise on this space is growing, as seen in March 2022 when metaverse-themed global exchange traded products hit $2 billion in assets under management globally, the firm said.

“We see the metaverse as the next leap forward in global communication and connectivity. It has the potential to revolutionise many sectors and processes, and reshape every facet of society, from the way we work, consume, interact, and produce,” Omar Moufti, product strategist for thematic and sector ETFs at BlackRock, said. “As further uses for metaverse technologies become apparent, the desire for exposure to the technology companies behind these innovations grows.”

The iShares Metaverse UCITS ETF tracks the STOXX Global Metaverse Index. Companies are included based on the quality of their innovation activity through an assessment of the patents they file.