How to invest in the metaverse with Syfe Select

    The metaverse is the latest buzzword in the investing world. Ever since Facebook changed its company name to Meta, the term has exploded in popularity. In short, the metaverse is a concept that involves a melding of virtual, augmented, and physical realities to enable users to live, work, and play in immersive digital worlds.  

    Bloomberg recently estimated that the global metaverse revenue opportunity could reach $800 billion in 2024. For investors looking to gain exposure to this trend, Syfe Select now offers the Metaverse ETF (META). 

    META is one of seven new ETFs that have been added to Syfe Select this month. These ETFs are some of the most requested ones from our customers and we’ve taken in that feedback to expand our Syfe Select investment universe.

    Here are the seven new ETFs you can now access on Syfe Select.

    • META (Roundhill Ball Metaverse ETF)
    • IWDA (iShares Core MSCI World UCITS ETF)
    • VIG (Vanguard Dividend Appreciation ETF)
    • VGT (Vanguard Information Technology ETF)
    • FDIS (Fidelity MSCI Consumer Discretionary Index ETF)
    • IGV (iShares Expanded Tech-Software Sector ETF)
    • EMQQ (The Emerging Markets Internet & Ecommerce ETF)

    META: Roundhill Ball Metaverse ETF 

    META is designed to offer investors convenient exposure to the metaverse. It holds stocks of companies that are actively involved in the metaverse, such as high-powered graphics chips maker Nvidia, online gaming platform Roblox, tech behemoth Microsoft and Facebook-parent Meta.

    These four companies are among META’s top holdings. The ETF currently invests in 40 metaverse-related companies spanning the following categories.

    Source: Roundhill Investments

    Launched in June 2021, the ETF has seen its assets surge by 548% to $823.2 million, according to data from Koyfin. As awareness and acceptance of the metaverse grows, META is poised to hit $1 billion in assets under management very soon should it continue its current trajectory.

    META has an expense ratio of 0.75%. View more details here.

    An alternative to META

    Apart from META, Syfe Select offers access to the metaverse via the VanEck Video Gaming and eSports ETF (ESPO) as well. 

    While META is overtly marketed as a metaverse ETF, ESPO holds many of the same stocks that META holds.

    Source: VanEck. Portfolio 1 refers to META while Portfolio 2 refers to ESPO

    As such, Syfe Select offers customers two options to invest in the metaverse, either through META or ESPO.

    IWDA (iShares Core MSCI World UCITS ETF)

    IWDA is one of the most popular world index ETFs out there. Similar to VWRA (also available on Syfe Select), IWDA is a mainstay on many Bogleheads’ three-fund portfolios.

    The ETF holds around 1,554 global companies within 23 developed countries. It covers 85% of the listed stocks in each country, and is frequently used as a core investment holding to seek long-term growth.

    Top holdings include Apple, Microsoft, Amazon, Tesla, Home Depot, and Meta.

    Additionally, IWDA is a UCITs ETF that’s domiciled in Ireland. With UCITs funds, investors avoid the 30% dividend withholding tax that comes with US-domiciled funds. Instead, there’s only a 15% dividend withholding tax that’s levied. 

    It has an expense ratio of 0.20%. View more details here

    VIG & VGT (Vanguard Dividend Appreciation ETF & Vanguard Information Technology ETF)

    Following the addition of four Vanguard ETFs in October, we’ve added two more to Syfe Select. 

    VIG holds large-cap stocks with a track record of growing their dividends year over year. Top holdings include Microsoft, JPMorgan Chase, UnitedHealth Group, Johnson & Johnson, and Home Depot.

    VIG’s very low expense ratio of 0.06% makes it an attractive option for dividend investors focused on US stocks. See more details here.

    VGT is focused on the information technology sector. It holds 338 stocks across companies that serve the computer and electronics industries. Apple, Microsoft, Nvdia, Visa and Adobe are some of VGT’s top holdings.

    Investors should note that VGT’s top two holdings – Apple and Microsoft – make up nearly 40% of the entire portfolio. From this perspective, some investors choose the Invesco QQQ ETF (QQQ) over VGT for better diversification and risk management.

    Source: Vanguard

     VGT has an expense ratio of 0.1%. See more details here.

    FDIS (Fidelity MSCI Consumer Discretionary Index ETF)

    FDIS is widely regarded as one of the most efficient ETFs in the US consumer discretionary space with an expense ratio of only 0.08%. 

    Consumer discretionary businesses sell non-essential goods and services such as cars, luxury items, home furnishing, sports equipment, entertainment, etc. As you can expect, top holdings within FDIS include Amazon, Tesla, Home Depot, Nike, and McDonald’s. 

    Here’s how FDIS stacks up against another popular consumer discretionary ETF, the Consumer Discretionary Select Sector SPDR Fund (XLY).

    Source: ETF.com

    FDIS is more broadly diversified with 326 holdings, compared to 64 for XLY. In terms of sectors, here’s how they differ.

    Source: ETF.com

    View more details about FDIS here.

    IGV (iShares Expanded Tech-Software Sector ETF)

    IGV offers targeted exposure to North American software companies in the technology and communication services sectors. The ETF counts Microsoft, Salesforce, Adobe, Intuit, and Oracle amongst its top holdings.

    It has 118 holdings in all and an expense ratio of 0.43%. View more details here.

    EMQQ (The Emerging Markets Internet & Ecommerce ETF)

    EMQQ offers exposure to the growth in internet and e-commerce activities within the emerging markets. The ETF invests in companies involved in online retail, search engines, social networking, online video, e-payments, online gaming and online travel. 

    Many investors see emerging markets as a significant growth opportunity. More than one billion people living in the developing world are expected to enter the consumer class in the coming decades. These consumers are increasingly accessing the internet and other online services.

    Tencent, Reliance Industries, Prosus NV, Mercado Libre, and SEA Ltd are amongst EMQQ’s top holdings. The ETF has an expense ratio of 0.86%. Learn more here.

    How to use Syfe Select

    Want to start investing in these ETFs? You can do so using Syfe Select for a fuss-free experience. 

    To begin, click on “Add new” and choose “Select Custom”. Under the “View all” option, you can search for your desired ETFs using their ticker symbol and add them to your portfolio. For example, type in “META” in the search bar to add the META ETF to your Syfe Select portfolio.

    Once you’ve confirmed your portfolio, we’ll invest your money in your chosen ETFs automatically. There are no brokerage fees involved and dividends are reinvested for you at no extra charge.

    Learn more about Syfe Select and click here to create your Syfe account.