Introduction: Is the Metaverse Still Worth Your Money?

Imagine investing in the internet back in 1995. Some people thought it was science fiction. Others bet big on it and never looked back. Today, the metaverse is sparking that same debate. And right at the center of that debate sits the Roundhill Ball Metaverse ETF (ticker: META), one of the first exchange-traded funds built specifically around the metaverse theme.

If you have been hearing the word metaverse tossed around and wondering whether there is a smart way to invest in it, you are in the right place. This article breaks down exactly what the Roundhill Ball Metaverse ETF is, what it holds, how it has performed, what risks you need to know, and whether it fits your investing goals.

You will also get answers to the most common questions investors ask about this fund. By the end, you will have a clear picture to help you make a confident decision.

Quick Preview: We cover the ETF’s structure, top holdings, performance history, fees, key risks, and how it compares to alternatives. Stick around for the FAQ at the end.

What Is the Roundhill Ball Metaverse ETF?

The Roundhill Ball Metaverse ETF is an actively designed, thematic exchange-traded fund launched in June 2021 by Roundhill Investments. It was co-developed with Ball Metaverse Research Partners, led by Matthew Ball, a widely respected metaverse analyst and author.

The fund trades on the NYSE Arca under the ticker symbol META. Yes, that is the same ticker that Meta Platforms (formerly Facebook) eventually claimed, which created some confusion in late 2021. Roundhill later changed the ticker to METV to clear things up.

The ETF tracks the Ball Metaverse Index, a rules-based index that identifies companies positioned to benefit from the growth of the metaverse. These are not just gaming companies. The index casts a wide net across several industries.

What Does “Metaverse” Mean in This Context?

The fund defines the metaverse as the next iteration of the internet. It includes persistent, shared, three-dimensional virtual worlds where people can work, socialize, play, and transact. Think virtual reality platforms, augmented reality, cloud computing, digital payments, networking infrastructure, and the content built on top of all of it.

Matthew Ball outlined eight components of the metaverse in his research:

• Hardware (VR headsets, AR glasses, mobile devices)
• Networking infrastructure (5G, fiber, edge computing)
• Computing power (cloud, GPUs)
• Virtual platforms (gaming worlds, social spaces)
• Interchange tools and standards
• Payments and digital commerce
• Content, assets, and identity
• User behaviors and evolving social norms

The Roundhill Ball Metaverse ETF aims to cover all of these layers, which is why its holdings are more diverse than you might expect.

Top Holdings: Who Is Actually in This Fund?

One of the most important things you can do before buying any ETF is look inside the box. The Roundhill Ball Metaverse ETF holds around 40 to 50 companies at any given time. The portfolio leans heavily toward large-cap technology companies.

Here is a snapshot of the types of companies typically included:

1. Roblox Corporation: A leading virtual gaming and social platform popular with younger users.
2. Unity Software: Provides the game engine technology that powers many 3D and VR experiences.
3. NVIDIA Corporation: Supplies the graphics processing units (GPUs) essential for rendering virtual worlds.
4. Meta Platforms: Despite its own struggles, Meta remains a major metaverse infrastructure investor.
5. Microsoft: With investments in mixed reality, Azure cloud, and gaming (Activision Blizzard), it is a key player.
6. Apple: Its Vision Pro headset positions it squarely in the spatial computing space.
7. Qualcomm: Provides the mobile chips that power AR and VR devices.
8. Autodesk: Offers 3D design tools used to build virtual environments.

The fund is market-cap weighted, which means larger companies get a bigger slice. This keeps the fund liquid and tradable but does tilt it toward the biggest tech names rather than smaller pure-play metaverse startups.

Pro tip: If you want more exposure to small-cap metaverse companies, the METV alone may not give you that. You might need to pair it with individual stock picks or a small-cap tech fund.

How Has the Roundhill Ball Metaverse ETF Performed?

Let us be honest. The Roundhill Ball Metaverse ETF had a rough ride after launch. It launched in June 2021 during peak metaverse hype. The fund attracted billions in inflows quickly. Then the broader tech selloff of 2022 hit hard, and metaverse sentiment cooled significantly.

Performance Highlights

Here is a rough timeline of the fund’s performance journey:

• June 2021: Fund launches near $15 per share, sees strong early inflows.
• Late 2021: Meta Platforms rebrands from Facebook. Metaverse enthusiasm hits its peak.
• 2022: Rising interest rates crush growth stocks. The fund drops more than 60% from its high.
• 2023: Modest recovery as tech stocks rebound. AI interest lifts some holdings like NVIDIA.
• 2024 to 2025: Mixed performance as metaverse narrative competes with AI for investor attention.

To be fair, many thematic ETFs follow this pattern. They attract capital at peak hype, then deliver sobering reality. The key question is whether the long-term thesis holds up. And that depends heavily on how fast metaverse adoption actually develops.

Comparing METV to Benchmarks

The fund has generally underperformed the broader Nasdaq 100 over most of its life. That is partly because the Nasdaq 100 includes many of the same tech companies but also holds profitable giants that have not been weighed down by the metaverse label.

However, if metaverse adoption does accelerate, a focused fund like METV could outperform broad tech indexes. That is the core bet you are making when you buy this ETF.

Fees and Fund Structure: What Does It Cost You?

The Roundhill Ball Metaverse ETF carries an expense ratio of 0.59% per year. That means for every $10,000 you invest, you pay $59 annually in fund management fees.

Is that expensive? Compared to plain vanilla index funds, yes. The Vanguard Total Stock Market ETF charges just 0.03%. But compared to other thematic ETFs, 0.59% is pretty standard. You are paying for the specialized index methodology and the ETF management overhead.

Fund Details at a Glance

Here is what you need to know about the fund structure:

• Ticker: METV (formerly META)
• Issuer: Roundhill Investments
• Index: Ball Metaverse Index
• Expense Ratio: 0.59%
• Exchange: NYSE Arca
• Launch Date: June 30, 2021
• Holdings: Approximately 40 to 50 companies
• Dividend Yield: Minimal, as most holdings are growth-oriented

The fund uses a passive replication strategy to track its index. It rebalances periodically to reflect changes in the index methodology.

The Risks You Should Understand Before Buying

Every investment carries risk, and a thematic ETF like the Roundhill Ball Metaverse ETF carries more concentrated risk than a broad market fund. Here are the main risks you should weigh carefully.

1. Theme Concentration Risk

The entire fund bets on one narrative: the metaverse takes off. If the metaverse proves to be more hype than reality, or if adoption takes decades longer than expected, this fund will struggle. You are not diversified across industries in the traditional sense.

2. Valuation Risk

Many holdings in the fund, especially smaller companies, trade at high price-to-earnings ratios or even at a loss. When interest rates rise, high-valuation growth stocks tend to get hit hardest. We saw this play out painfully in 2022.

3. Competition from AI

Investor attention and capital have increasingly shifted toward artificial intelligence. Many companies pivoted their messaging from metaverse to AI in 2023 and 2024. This shift in narrative can affect stock prices, fund flows, and overall sentiment around metaverse investments.

4. Regulatory Risk

Virtual worlds, digital currencies, and online social platforms face growing scrutiny from regulators globally. Changes in data privacy law, content regulation, or cryptocurrency rules could affect multiple holdings at once.

5. Liquidity of Smaller Holdings

While large holdings like NVIDIA and Microsoft are highly liquid, smaller holdings can experience wider bid-ask spreads and sharper price swings during market stress. This is a minor concern for most ETF investors but worth knowing.

Bottom line: The Roundhill Ball Metaverse ETF is not a fund for the faint-hearted or for money you cannot afford to keep locked up for several years. It suits investors with a long time horizon and a high tolerance for volatility.

Who Should Consider the Roundhill Ball Metaverse ETF?

The Roundhill Ball Metaverse ETF is not designed for everyone. It is a satellite holding, not a core portfolio position. Here is a simple way to think about who it suits.

This Fund May Suit You If:

• You believe the metaverse will be a major economic force over the next 10 to 20 years.
• You want diversified exposure to the theme rather than picking individual stocks.
• You are comfortable holding through significant volatility without panic selling.
• You have a well-diversified core portfolio and are adding a smaller thematic allocation.
• You have a long investment horizon of at least five to ten years.

This Fund May Not Suit You If:

• You need your investment to grow steadily with low volatility.
• You are investing money you may need within the next few years.
• You want income through dividends (this fund offers minimal yield).
• You are already heavily concentrated in large-cap tech stocks.

I always suggest allocating no more than five to ten percent of your total portfolio to any single thematic ETF. The potential upside is real, but so is the downside.

How Does It Compare to Alternatives?

The Roundhill Ball Metaverse ETF is not the only way to invest in digital and virtual world themes. Here is how it stacks up against a few alternatives.

METV vs. Broad Tech ETFs (QQQ, VGT)

Broad tech ETFs like QQQ track the entire Nasdaq 100, which includes many of the same companies as METV but without the metaverse-specific concentration. QQQ has historically delivered stronger risk-adjusted returns and charges a lower expense ratio (0.20%). If you are not convinced the metaverse thesis is unique, QQQ may be the smarter choice.

METV vs. Gaming ETFs (HERO, GAMR)

Gaming-focused ETFs like HERO and GAMR overlap with METV in the virtual world space but focus specifically on the gaming industry. If you believe gaming is the near-term entry point for the metaverse, gaming ETFs may give you more targeted exposure with similar or lower fees.

METV vs. Individual Stocks

If you have strong conviction in specific companies like Roblox, Unity, or NVIDIA, buying those stocks directly avoids the fund’s expense ratio. But you take on higher concentration risk in individual companies. The ETF spreads that risk across 40 to 50 names.

After reviewing the alternatives, I believe the Roundhill Ball Metaverse ETF offers a reasonably well-constructed entry point for the metaverse theme. But it works best as part of a balanced strategy, not as a standalone bet.

The Metaverse Investment Thesis: Is It Still Valid?

This is the biggest question of all. Is the metaverse still a credible investment theme in 2025 and beyond, or did it peak with the Facebook rebrand in 2021?

The honest answer: the metaverse as a near-term consumer phenomenon has cooled. But the underlying technologies driving it have not gone away. In fact, many of them have become more relevant.

• Spatial computing has taken off with Apple Vision Pro, which brought mainstream attention to AR/VR in 2024.
• NVIDIA’s graphics chips power both AI workloads and virtual world rendering, making it a dual-theme stock.
• Enterprise adoption of virtual collaboration tools continues to grow, even without consumer hype.
• Gaming remains one of the most profitable digital entertainment sectors globally.
• Web3 infrastructure is maturing, even if the consumer products have been slow to follow.

The metaverse may take longer to arrive than the 2021 hype suggested. But the building blocks are falling into place. Investors with patience may be rewarded when adoption eventually scales.

Conclusion: Should You Invest in the Roundhill Ball Metaverse ETF?

The Roundhill Ball Metaverse ETF (METV) is one of the most thoughtfully constructed thematic ETFs in the market. It draws on Matthew Ball’s deep metaverse research framework and covers the full technology stack, not just gaming or social media.

Its performance has been bumpy, its expense ratio is above average, and it carries real thematic concentration risk. But if you believe the metaverse is a legitimate long-term shift in how people interact with digital environments, and if you are investing with a long enough time horizon, it offers a diversified way to access that theme.

The key is to treat it as a satellite position, keep your allocation modest, and stay patient through the inevitable volatility.

What do you think? Is the metaverse the next internet, or is it still too early to call? Share your view with your fellow investors or drop a comment below. And if this article helped clarify your thinking, share it with someone who is weighing the same decision.

Frequently Asked Questions (FAQ)

1. What is the Roundhill Ball Metaverse ETF?

It is an exchange-traded fund (ETF) that tracks the Ball Metaverse Index, giving investors diversified exposure to companies building the metaverse across hardware, software, networking, and content.

2. What is the ticker symbol for the Roundhill Ball Metaverse ETF?

The current ticker is METV, trading on NYSE Arca. It was originally launched under the ticker META before Meta Platforms claimed that symbol.

3. What are the top holdings in METV?

Top holdings typically include large technology companies like NVIDIA, Microsoft, Apple, Meta Platforms, Roblox, Unity Software, and Qualcomm, along with a range of smaller metaverse-adjacent companies.

4. What is the expense ratio of the Roundhill Ball Metaverse ETF?

The fund charges an expense ratio of 0.59% annually, which is typical for a thematic ETF but higher than broad market index funds.

5. Is the Roundhill Ball Metaverse ETF a good investment?

It depends on your belief in the metaverse thesis and your risk tolerance. It suits long-term, growth-oriented investors willing to tolerate significant short-term volatility. It is best used as a small satellite position in a diversified portfolio.

6. How has the Roundhill Ball Metaverse ETF performed since launch?

The fund launched in June 2021 and suffered heavy losses during the 2022 tech selloff, falling more than 60% from its peak. It has seen partial recovery since then, though it has generally underperformed broader tech indexes.

7. What is the Ball Metaverse Index?

The Ball Metaverse Index is a rules-based index developed by Matthew Ball and Ball Metaverse Research Partners. It identifies companies that contribute to the eight metaverse building blocks outlined in Ball’s research framework.

8. Is METV the same as Meta Platforms stock?

No. METV is the Roundhill Ball Metaverse ETF, a fund holding dozens of companies. Meta Platforms (formerly Facebook) is a single stock and also happens to be one of the holdings inside METV.

9. Does the Roundhill Ball Metaverse ETF pay dividends?

The fund pays minimal dividends because most of its holdings are growth-oriented companies that reinvest profits rather than distributing them as income.

10. How can I buy the Roundhill Ball Metaverse ETF?

You can buy METV through any brokerage account that supports US-listed ETFs, including TD Ameritrade, Fidelity, Charles Schwab, Robinhood, and most major platforms. Simply search for the ticker METV.

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Email: johanharwen314@gmail.com
Author Name: Johan Harwen

About the Author: Johan Harwen is a financial writer and investment researcher with over a decade of experience covering ETFs, technology stocks, and emerging market themes. He has written for leading financial publications and specializes in making complex investing concepts accessible to everyday investors. Johan holds a degree in Economics and is passionate about helping readers cut through market noise to make confident, informed financial decisions. When he is not analyzing fund structures or digging into index methodologies, he enjoys hiking and reading about the future of technology.