4. Global X Metaverse ETF (NASDAQ:VR)
Global X Metaverse ETF (NASDAQ:VR) is a relatively new exchange traded fund, founded in April 2022. The ETF has net assets of $2.11 million and an expense ratio of 0.50%, with 40 total holdings. Global X Metaverse ETF (NASDAQ:VR) invests in companies that will benefit from the development and commercialization of the metaverse.
One of the largest holdings in Global X Metaverse ETF (NASDAQ:VR)’s portfolio is NVIDIA Corporation (NASDAQ:NVDA), an American multinational technology firm that specializes in computer hardware and software, cloud computing, semiconductors, artificial intelligence, GPUs, consumer electronics, and video games.
BofA analyst Vivek Arya maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) on June 29 but lowered the price target on the shares to $220 from $270. The analyst observed that tighter global monetary policy, political unrest, and consumer weakness can possibly pressure chip demand in the second half of 2022 and 2023.
According to the first quarter database of Insider Monkey, 102 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 110 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is a significant shareholder of the company, with 7.3 million shares worth about $2 billion.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
