It is the year 2023, and metaverse ETFs, metaverse crypto, metaverse stocks, NFTs, coins, and digital real estate are becoming a legitimate part of the mainstream investing world. .
Perhaps, we have all lost our collective minds, or maybe, virtual world technologies are the next best thing since sliced bread.
The fact is that some of the hottest developments in today’s world of alternative investment assets are related to the Metaverse.
Read on to learn about the top Metaverse ETFs available in Canada.
What is a Metaverse ETF?
According to Meta Platforms (Facebook):
The “metaverse” is a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you. You’ll be able to hang out with friends, work, play, learn, shop, create and more.
– Meta
You can think of the metaverse as a digital world where your avatar comes to life with immersive 3D experiences that are not limited by your location.
While various virtual and augmented reality technologies already exist, the “metaverse” became more popular when Facebook recently rebranded itself to Meta Platforms Inc.
If you think the Metaverse world will grow exponentially in the future, you could potentially earn significant returns by investing in Metaverse ETFs.
These thematic ETFs are investment vehicles that invest your money in companies that are involved in the development of the metaverse.
Metaverse ETFs are just one of many ways to gain exposure to the metaverse. You can also invest in metaverse cryptocurrencies or individual metaverse-related stocks.
Best Metaverse ETFs in Canada
Three Metaverse ETFs in Canada are offered by:
- Evolve Funds Group Inc: Evolve Metaverse ETF (MESH)
- Horizons ETFs: Horizons Global Metaverse Index ETF
- Fidelity: Fidelity Total Metaverse Index ETF
1. Evolve Metaverse ETF (MESH)
The Evolve Metaverse ETF (MESH) began trading on the Toronto Stock Exchange in November 2021.
As per the company, MESH will provide investors with long-term capital appreciation by investing in various stocks of companies involved in developing the metaverse.
Key details for the Evolve Metaverse ETF as of February 2023 include the following:
- Inception date: November 24, 2021
- Assets under management (AUM): $$9.434 million
- Ticker symbol: MESH
- Management fee: 0.60%
- Listing currency: CAD
- Eligible accounts: Registered and non-registered investment accounts
- Number of holdings: 31
MESH is available in both hedged and unhedged versions.
The Evolve Metaverse ETF is actively managed and currently holds 25 equity securities as follows:
| MESH Holdings | Allocation | MESH Holdings | Allocation |
| Coinbase Global Inc | 5% | Roblox Corp | 4.27% |
| NVIDIA Corp | 4.01% | Unity Software Inc. | 3.83% |
| Meta Platforms Inc | 3.80% | eXp World Holdings Inc | 3.70% |
| Matterport Inc | 3.54% | Synaptics Inc | 3.48% |
| Sea Ltd | 3.36% | Advanced Micro Devices Inc (AMD) | 3.28% |
| Walt Disney Company | 3.23% | Snap Inc | 3.21% |
| NetEase Inc | 3.19% | Taiwan Semiconductor | 3.18% |
| Qualcomm Inc | 3.16% | Apple Inc | 3.15% |
| Autodesk Inc | 3.14% | Amazon.com Inc | 3.10% |
| Alibaba Group Holding Ltd | 3.07% | Sony Group Corp | 3.04% |
| Tencent Holdings Ltd | 3.0% | Take-Two Interactive | 2.94% |
| Microsoft Corp | 2.89% | Alphabet Inc | 2.87% |
| Adobe Inc | 2.87% | PTC Inc | 2.87% |
| Intel Corp | 2.86% | Cisco Systems Inc | 2.85% |
| Activision Blizzard Inc | 2.68% | Electronic Arts Inc | 2.43% |
| Ubisoft Entertainment SA | 1.99% |
The asset allocation will vary based on each stock’s price performance and actions taken by fund managers to increase returns.
As for the fund’s global diversification, the constituent stocks are geographically allocated as follows:
- United States:79.17%
- China: 9.26%
- Singapore: 3.36%
- Taiwan: 3.18%
- Japan: 3.04%
- France: 1.99%
MESH Fees and Returns
MESH has had a rough time since its inception, with a total loss of -35.04% and a 1-year return of -29.39%.
Its management fee is currently at 0.60%. The management expense ratio (MER) is not yet available.
How To Buy Evolve Metaverse ETF in Canada
You can purchase MESH using any of the top stock trading apps in Canada, including Questrade and Wealthsimple Trade.
Questrade offers free ETF purchases, and you can also use the platform to trade stocks, options, mutual funds, and FX.
New Questrade clients get $50 in free trade credits after funding their investment account with at least $1,000.
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Wealthsimple Trade does not charge trading commissions when you buy or sell ETFs and stocks. And new users get a $25 cash bonus after depositing $150 or more in their new accounts.
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2. Horizons Global Metaverse Index ETF (MTAV)
The Horizons Global Metaverse Index ETF (MTAV) invests in companies that will potentially benefit from the “adoption and usage of technologies expected to grow and support the functioning of the Metaverse.”
This ETF is also listed on the TSX, and some of the fund facts as of February 2023 are:
- Inception date: November 26, 2021
- AUM: $4.36 million
- Ticker symbol: MTAV
- Management fee: 0.55%; MER: 0.65%
- Listing currency: CAD
- Eligible accounts: Registered and non-registered accounts
MTAV hedges U.S. dollar exposure back to the Canadian Dollar.
While I could not find the number of stocks comprising MTAV, its top-10 equity holdings as of February 24, 2023, were:
| MTAV Holdings | Allocation |
| NVIDIA Corp | 6.12% |
| Meta Platforms Inc Cl A | 5.98% |
| Apple Inc | 5.37% |
| Microsoft Corp | 5.35% |
| Oracle Corp | 5.25% |
| Visa Inc Cl A | 5.08% |
| Mastercard Inc Cl A | 5.05% |
| Amazon.com Inc | 4.88% |
| Alphabet Inc Cl A | 4.81% |
| Tencent Holdings Ltd | 4.50% |
It holds stocks companies in the following sectors:
- Information technology
- Digital infrastructure
- Augmented/Virtual reality
- Digital Marketplace
- Creator economy
- Digital payment
- Gaming
As for geographical diversification, MTAV is diversified across these locations: the U.S., China, Japan, Canada, Singapore, and Israel.
MTAV Fees and Returns
The management fee for MTAV is 0.55% (plus applicable sales tax), and its MER is 0.65%.
As for MTAV’s portfolio performance and returns, it delivered a -21.72% return over the last year but has bounced back with a 15.09% return so far in 2023 (as of February 2023).
How To Buy MTAV in Canada
Like MESH, you can purchase the Horizons Global Metaverse Index ETF using an online discount brokerage account such as
- Wealthsimple Trade ($25 cash bonus)
- Questrade ($50 trading fee credit)
Other top brokerage platforms to consider include CIBC Investor’s Edge and Qtrade.
3. Fidelity Total Metaverse Index ETF
The Fidelity Total Metaverse Index ETF (FMTV) invests in companies that expose Canadian investors to various aspects of the Metaverse, digital payments, and cryptocurrency industries.
This ETF is listed on the NEO Exchange in Canada, and some of the fund facts as of February 2023 are
- Inception date: May 13th, 2022
- AUM: $5.3 million
- Ticker symbol: FMTV
- Management fee: 0.50%
- MER: 0.57%
- Number of Holdings: 90
- Listing currency: CAD
- Eligible accounts: Registered and non-registered accounts
FMTV has 90 holdings across North America, Europe, and Asia. The top ten holdings in FMTV as of February 2023 are:
| FMTV Holdings | Allocation |
| Meta Platforms Inc | 5.95% |
| Tencent Holdings Ltd | 5.44% |
| NVIDIA Corp | 5.18% |
| Apple Inc | 4.26% |
| Adobe Inc | 4.02% |
| Alphabet Inc Class A | 3.88% |
| NetEase Inc ADR | 2.63% |
| Samsung Electronics Co Ltd | 2.50% |
| Nintendo Co Ltd | 2.48% |
| Naver Corp | 2.29% |
FMTV has a wide range of geographical markets that it holds stocks from. Here are the top 5 countries by allocation:
- United States: 50.3%
- South Korea: 12.6%
- China: 11.9%
- Japan: 11.5%
- France: 4.0%
FMTV Fees and Returns
The management fee for FMTV is 0.50% (plus applicable sales tax). Its MER is a slightly higher 0.57%
As for FMTV’s portfolio performance and returns, this data will not be available until its 1st anniversary in May.
Pros of Metaverse ETFs
Investing in the metaverse is a lot easier using an ETF.
Fund managers with a decent research budget pick stocks of companies that will potentially do well in the space, and you don’t have to worry too much about which stocks fit in.
Also, you enjoy portfolio diversification since the ETF holds several stocks in different sectors and countries. This translates into lower investment risk than investing in only a handful of individual stocks.
The availability of commission-free ETF trading platforms means you won’t be paying $10 per transaction, which is also great.
Cons of Metaverse ETFs
Metaverse ETFs are not meant for risk-averse investors. If you often feel like bailing out of the stock markets when there are severe price corrections, you shouldn’t hold an ETF concentrated in only a few companies.
There is a good reason, respectively, that both MESH and MTAV carry a “medium” and “high” risk rating.
Investing in these Metaverse ETFs does not get you digital real estate or property in the metaverse. If you intend to buy land in the metaverse, you must look elsewhere.
Metaverse Crypto Coins
Another popular way to invest in the metaverse is through cryptocurrencies. Some of the top metaverse crypto coins you can find online include:
- Axie Infinity (AXS)
- Decentraland (MANA)
- The Sandbox (SAND)
- Illuvium (ILV)
- Enjin Coin (ENJ)
- SushiSwap (SUSHI)
- Chromia (CHR)
- Render Token (RNDR), etc
Many top Metaverse crypto coins are also related to the NFT and gaming crypto markets.
How To Buy Metaverse Crypto in Canada
You can buy Metaverse crypto using one of these crypto platforms or any of the three featured below.
Confirm that the exchange supports the coin you want to buy before creating an account!
Best Crypto Trading Platforms in Canada
CoinSmart
Wealthsimple Crypto
VirgoCX
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Metaverse Stocks
If you think a company will enjoy the metaverse’s proceeds, you could invest in it directly.
Looking at the holdings of MESH and MTAV, some potential metaverse stocks you could consider include:
- Apple
- Adobe
- Alphabet
- Meta Platforms
- Microsoft
- Roblox
- Walt Disney
Of course, these are just wild guesses. Do your own research!
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