Here’s how you can increase your exposure to the metaverse

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on Dec 23, 2021
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  • CNBC's Julia Boorstin discusses different ways to invest in the metaverse.
  • Roundhill Ball Metaverse ETF could be a suitable pick for broader exposure.
  • On earnings call, executives mentioned metaverse a record 449 times in Q3.

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The metaverse could take another decade to fully realise, but investors can already play the space with money in the building blocks of the “next big thing”, says CNBC’s Julia Boorstin.

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On the earnings call, executives mentioned metaverse a record 449 times in the third quarter, and Boorstin says following are the four ways for investors to increase their exposure to this space.

Chipmakers

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The idea of the metaverse is nothing but fiction without powerful GPUs. So, the simplest strategy to invest in the metaverse is to buy the chipmakers. Bernstein has an ‘outperform’ rating on two that he expects to be the front and centre of the metaverse; Nvidia Corp and Qualcomm Inc.

5G Network Providers

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A prerequisite of the metaverse is virtual reality that calls for lightning-fast networks. It is, therefore, conceivable that network providers will benefit from it. To play this side of the metaverse, investors should consider the likes of T-Mobile, AT&T, and Verizon, said Boorstin.

Social Media

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Let’s not forget that metaverse was the brainchild of Mark Zuckerberg. So, social platforms for sure will be an important component of the metaverse experience. Names like Snap, Roblox, and of course, Meta Platforms, as per Goldman Sachs, are well-positioned to benefit from the social aspect of the metaverse.

Exchange-traded Fund

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For investors who prefer indices over individual stocks for broader exposure, the Roundhill Ball Metaverse ETF (META) could be a suitable pick. Interestingly, it’s also on sale right now, down about 10% from its high in mid-November. Last week, Nike bought RTFKT to penetrate the metaverse space.

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