Retrenchment by growth stocks is giving investors pause regarding a variety of disruptive growth themes, including the metaverse.
However, history shows that innovative growth segments encounter bumps along the way to validation, and with growth stocks less expensive today than they were a year ago and with the metaverse still in its infancy, the long-term outlook remains compelling.
Investors looking to wade into the metaverse space with an emphasis on familiar names have a viable option in the form of the Fidelity Metaverse ETF (FMET). Often with disruptive growth themes, investors are inclined to pick individual stocks, which can lead them to speculative fare and elevated volatility. On the other hand, FMET offers a basket approach chock full of established, profitable companies. Moreover, FMET is poised to meet the demands of a growing investing theme.
“The metaverse is projected to be worth more than $800 million by 2028. This makes sense when you consider Facebook’s shift into the metaverse and their $10 billion investment towards its growth. If you are looking to make a similarly smart investment, claiming your share of the metaverse is an excellent choice,” according to Bogart Wealth.
Currently, one of the main metaverse applications is gaming. FMET is levered to that theme, as about 10 of its holdings have direct gaming exposure. However, much of the metaverse’s long-term investment potential lies beyond gaming.
“However, the metaverse is expanding past gaming. Mark Zuckerberg is taking Facebook into the metaverse and other platforms seem to be quickly following suit. The current popularity of these virtual worlds as well as their projected growth makes metaverse investing a great financial choice,” added Bogart.
Importantly, Facebook parent Meta Platforms (NASDAQ:META) isn’t alone among behemoth companies seeing promise and investing in the metaverse.
“Amazon and Microsoft, two world leaders in technology, are known for developing tech products quickly and effectively. This means that the metaverse may become mainstream sooner rather than later. If you can’t afford to invest in these companies, you can instead invest in the metaverse and encourage development,” concluded Bogart Wealth.
In addition to Meta, FMET provides ample exposure to well-known mega-cap growth companies. That group includes Google parent Alphabet (NASDAQ:GOOG), Apple (NASDAQ:APPL), and chip giant Nvidia (NASDAQ:NVDA), among others. Home to 56 stocks overall, FMET is affordable among funds in this category with an annual fee of 0.39%, or $39 on a $10,000 stake.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.