Despite People Pillar weakness and an Average Process Pillar, Roundhill Ball Metaverse ETF gets enough right to retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in momentum exposure and an overweight in liquidity exposure compared with category peers. Momentum is the premise that stocks that have recently outperformed will continue to do so. With low momentum exposure, the portfolio is holding stocks that managers believe to be undervalued. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The team managing this passive strategy earns a Low People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall attractive fees but is held back by a low success ratio across its lineup.

Analyst Rating

Roblox

Apple

NVIDIA

Microsoft

QUALCOMM

Snap

Amazon

Alphabet

Autodesk

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Roundhill Ball Metaverse ETF earns an Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. A low expense ratio, with costs ranking in its category's least expensive quintile, also influences the rating. Higher fees detract from net returns, which gives this fund an advantage over those with higher costs. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance, before fees and expenses, of the Ball Metaverse Index (the "index").  The index seeks to track the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies, or technological capabilities to enable the Metaverse, and benefit from its generated revenues. "Metaverse" is a term used to refer to a future iteration of the Internet. Under normal circumstances, at least 80% of the fund's net assets will be invested in Metaverse Companies, and which may include investments in ADRs or SPACs. The fund is non-diversified. 

 The portfolio is overweight in communication services and consumer cyclical relative to the category average by 29.3 and 2.8 percentage points, respectively. The sectors with low exposure compared to category peers are technology and industrials, with technology underweighting the average portfolio by 26.9 percentage points of assets and industrials similar to the average. The portfolio is positioned across 47 holdings and is relatively top-heavy. Of the strategy's assets, 51.0% are concentrated within the top 10 holdings, as opposed to the category’s 48.2% average. And finally, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.

Average

Process

Roundhill’s team earns a Low People Pillar rating. The primary determinant of the rating is the experience of the management team, which averages three years at this fund. The managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns, also holds the team back. Turnover at its parent firm further weakens the team. The firm's asset-weighted manager tenure of 41 years suggests that it could do more to retain portfolio managers.

People

Roundhill's track record as a steward is mixed, leading to an Average Parent Pillar rating. One area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for funds are, on average, within the second-cheapest quintile of similarly distributed strategies. Roundhill strategies have failed to have lengthy success. In particular, the firm's five-year risk-adjusted success ratio demonstrates that only 0% have both survived and beaten their respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development. With an average three-year Morningstar Rating of 1.7 stars, the risk-adjusted performance of Roundhill's open-end and exchange-traded funds falls short of competitors.

Parent

Roundhill Ball Metaverse ETF

The Roundhill Ball Metaverse ETF is an exchange-traded fund incorporated in the US. The fund seeks to track the performance of the Ball Metaverse Index, which is comprised of leading companies across major categories of the Metaverse.  “Metaverse” is a concept of a next-gen Internet that’s persistent, interoperable, synchronous, and open to everyone, with its own fully functioning economy and both virtual and real-world experiences. 

METV is a passively-managed ETF investing in globally-listed equities spanning various industries, all relating to what it defines as a future iteration of the internet  Metaverse. Stocks are selected by a committee and weighted in tiers.

VanEck Video Gaming and eSports ETF

VanEck Vectors Semiconductor ETF

Spear Alpha ETF

Pacer Data And Digital Revolution ETF

Nvidia (NVDA) disappointed investors with its third-quarter fiscal 2023 results, wherein it missed earnings estimates and forecast weakness in revenues for the ongoing quarter.

Nvidia Misses Q3 Earnings, Shares Up: ETFs in Focus

Nvidia cited weakening demand for its gaming processors by its channel partners and resellers.

Nvidia ETFs in Focus Ahead of Q3 Earnings

Fidelity MSCI Telecommunication Services Index ETF

iShares Global Telecom ETF

Invesco NASDAQ Internet ETF

Global X Social Media ETF

Vanguard Telecommunication Services ETF

Communication Services Select Sector SPDR Fund

Social media giant's more than 25% decline drags down rival companies.

Meta's Plummet Exposes Risks, Opportunities in ETFs

The issuer's filing outlines plans for an ETF targeting a particularly spicy theme.

iShares Dips Its Toe in the Metaverse

Amplify Transformational Data Sharing ETF

Unity Software

Global X Data Center REITs & Digital Infrastructure ETF

Walmart

The Metaverse is a shared virtual 3D world, or worlds, that are interactive and collaborative. Bloomberg Intelligence expects the market opportunity for the metaverse to reach $800 billion by 2024 from $500 billion in 2020.

Want to Tap Metaverse Boom? Stocks & ETFs to Play

The metaverse authority shared his insights at the Future Proof conference in Huntington Beach, California.

Matthew Ball on the Huge Metaverse Opportunity

iShares MSCI ACWI ETF

First Trust Indxx Metaverse ETF

Fidelity Covington Trust-Fidelity Metaverse Etf

Fount Metaverse ETF

Subversive Metaverse ETF

Proshares Metaverse ETF

Global X Metaverse ETF

Seven “metaverse” funds, and only three stocks in common.

What's the Metaverse? The Answer Depends on the ETF

CrowdStrike

SPDR S&P 500 ETF Trust

This cybersecurity company recently reported terrific earnings.

4 Stocks on My Radar This Week

PayPal

Twilio

The semiconductor market can be tricky, but this ETF might simplify things.

2 Stocks and 2 ETFs I Have My Eyes on This Week

The metaverse theme peaked last November shortly after a thematic ETF launched. Suffering a 55% drawdown, shares of METV have bottomed out and settled Friday at multi-month highs.

METV: Metaverse Stocks Bottoming, Eye March Highs

Invesco Dynamic Media ETF

Digital ad-dependent stocks have reported a sharp slowdown in revenues.

Social Media's Ad Revenue Slowdown Hits ETFs

ProShares On-Demand ETF

Snap shares slumped massively on downbeat earnings. Time to stay away from these ETFs if you are already not holding these.

Snap Slumps on Weak Q2: Time to Stay Away from These ETFs?

According to a McKinsey & Co. report, the metaverse could be worth about $5 trillion by 2030. Here are some top ways to trade the potential.

7 Top Metaverse Stocks with Massive Potential

Global X Blockchain ETF

First Trust Indxx Innovative Transaction & Process ETF

For weeks, the fund management world has pored over the more than 400 pages of rules proposed by the Securities and Exchange Commission that would make ETF issuers say more about their methods for picking securities according to ESG or factor principles. However, one paragraph in the proposal could effectively ban one of the most [.

The SEC's Potential Thorn for Thematic ETFs

While fears of inflation, rate hikes, and global conflicts are driving market volatility, there might be areas in this virtual.

‘Fresh' metaverse ETF to watch while hedging bets in unpredictable markets

Global X Robotics & Artificial Intelligence ETF

MicroSectors FANG+ ETN

TrueShares Technology, AI and Deep Learning ETF

Nvidia offered a weak sales guidance for the ongoing quarter.

Nvidia Sinks on Dismal Guidance: ETFs in Focus

Nvidia is expected to come up with an earnings beat in its Q1 report.

What's in Store for Nvidia ETFs in Q1 Earnings

METV is the only ETF that invests solely in the metaverse. Big Tech is ready to capture the metaverse market.

METV ETF - Big Tech Needs The Metaverse

Three issuers have launched funds targeting this theme in the past week.

Global X Joins Metaverse ETF Wave

All metaverse ETFs are not the same, and it's a tricky space to define.

Metaverse ETFs: A Rapidly Growing Universe

Metaverse is a shared virtual 3D world, or worlds, that are interactive and collaborative.

Metaverse an Emerging Concept Now: 4 ETFs to Tap

It's the first leg of back-to-back launches for the theme this week.

First Trust Launches Metaverse ETF

METV provides exposure to emerging technologies that allow the Metaverse to take form and grow. The fund trades at over 20x earnings in a market with rising interest rates and high inflation, which makes the bullish thesis risky.

META ETF: The Metaverse Provides New Opportunities For Tech Stocks

My first round of large-cap metaverse play stock picks outperformed the market; here's round two.

The Best Metaverse Stocks to Consider Buying Now

FRANKFURT, Germany , March 22, 2022 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative thematic funds, today announced the launch of the Roundhill Ball Metaverse UCITS ETF (METV) on the Deutsche Börse Xetra. METV is the first Metaverse ETF to list in Germany.

News for Roundhill Ball Metaverse ETF ETF (METV)