Meta ETFS for the Modern Investor

Author

Reads 221

Holding a Smartphone with the Threads App with the Meta Platforms Logo in the Background
Credit: pexels.com, Holding a Smartphone with the Threads App with the Meta Platforms Logo in the Background

Meta ETFs are a game-changer for modern investors, offering a new level of flexibility and diversification in their investment portfolios.

They allow investors to gain exposure to a wide range of asset classes and sectors, such as cryptocurrencies, commodities, and emerging markets.

This is particularly useful for investors who want to hedge against market volatility or gain exposure to new and emerging trends.

By using meta ETFs, investors can create a more efficient and effective portfolio that aligns with their individual goals and risk tolerance.

For example, a meta ETF can be used to gain exposure to the cryptocurrency market, while also providing a hedge against inflation through exposure to commodities like gold.

Investment Details

The meta ETF METV is listed on the NYSE Arca exchange, which is a well-established platform for trading ETFs.

The expense ratio for this ETF is 0.59%, which is a relatively low cost compared to other investment options.

You can buy and sell shares of METV, and the fund offers quarterly rebalancing to maintain its investment strategy.

Here's a brief summary of the fund's key details:

As always, it's essential to keep in mind that ETF holdings and allocations are subject to change, so it's crucial to stay informed about the fund's current composition.

Why Mtav?

Overhead view of a business team analyzing charts and data on a laptop.
Credit: pexels.com, Overhead view of a business team analyzing charts and data on a laptop.

If you're considering investing in the Mtav fund, you're probably wondering why it's worth your money. Mtav is designed for investors wanting an ESG screened global exposure to the development of the metaverse.

The fund provides exposure to small, mid, and large capitalisation developed and emerging market companies that invest in metaverse-related technologies. This includes virtual reality, 3D image modelling, and blockchain.

One of the key benefits of Mtav is its focus on ESG (Environmental, Social, and Governance) criteria. This means the fund excludes companies involved in controversial weapons, tobacco, nuclear power, and other industries that don't align with ESG standards.

Here are some of the industries that Mtav avoids:

  • Controversial weapons
  • Small arms and military contracting
  • Tobacco
  • Nuclear power
  • Thermal coal
  • Conventional oil and gas
  • Unconventional oil and gas

By excluding these industries, Mtav aims to provide a more sustainable investment option for those interested in the metaverse.

Fund Details

The METV fund is listed on the NYSE Arca exchange. It has an expense ratio of 0.59%.

The fund offers ETF options, which can be a convenient way to invest in a variety of assets. If you're interested in buying shares of METV, you'll need to know its CUSIP number, which is 53656F417. The ISIN number is US53656F4173.

METV is a passive fund, which means it's managed to track a specific index rather than trying to beat the market. This approach can be a good choice for investors who want to keep costs low and avoid trying to time the market.

About Direxion

Laptops on a desk displaying stock market charts and financial documents.
Credit: pexels.com, Laptops on a desk displaying stock market charts and financial documents.

Direxion is a leading provider of exchange-traded funds (ETFs) that offer unique investment strategies.

The company was founded in 1997 and has since grown to become a major player in the ETF market.

Direxion's products are designed to help investors manage risk and achieve their investment goals.

Their ETFs track a variety of indices, including the S&P 500 and the Russell 2000.

Direxion's products are listed on major exchanges, including the NYSE Arca and the NASDAQ.

The company's headquarters is located in Boston, Massachusetts.

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.

Business Involvement metrics are not indicative of a fund's investment objective and don't change a fund's investment objective or constrain the fund's investable universe.

For more information regarding a fund's investment strategy, please see the fund's prospectus.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research, which provides a profile of each company's specific business involvement.

Wooden tiles spelling ETF growth on a wooden surface, symbolizing investment strategy.
Credit: pexels.com, Wooden tiles spelling ETF growth on a wooden surface, symbolizing investment strategy.

This data is then summed up to give a view of a fund's market value exposure to specific business involvement areas.

Business Involvement metrics are only displayed if at least 1% of the fund's gross weight includes securities covered by MSCI ESG Research.

It's possible there is additional involvement in these covered activities where MSCI does not have coverage.

Performance and Returns

Meta ETFs have shown impressive performance in recent years, with some tracking the S&P 500 Index and delivering returns that closely match the benchmark.

By leveraging the power of meta ETFs, investors can potentially tap into the growth of the US stock market with minimal effort and cost. This can be a game-changer for those new to investing or with limited time to manage their portfolios.

According to historical data, meta ETFs have consistently outperformed traditional ETFs in terms of returns, with some achieving annual returns of up to 10% or more.

Yields

The word etf on a wooden board with scrabble tiles
Credit: pexels.com, The word etf on a wooden board with scrabble tiles

When evaluating the performance of a fund, one key metric to consider is the yield. The 30-Day SEC Yield is a yield calculation that reflects the dividends and interest earned during the period after the deduction of the fund's expenses.

This yield is also referred to as the "standardized yield." I've seen this calculation used in various financial reports and it's always a good idea to understand what it means.

The distribution frequency of a fund is also an important consideration. In the case of the fund mentioned, the distribution frequency is annual.

S&P 500 Returns Over the Next Decade

The S&P 500 has historically provided strong returns over the long term, with an average annual return of 10% over the past 90 years. This is a testament to the power of long-term investing.

One key factor to consider is the potential for inflation to erode returns. According to historical data, inflation has averaged around 3% per year over the past 90 years, which means that investors in the S&P 500 have had to work harder to achieve their returns.

Creative arrangement depicting financial markets with cubes, graphs, and a clock on a black background.
Credit: pexels.com, Creative arrangement depicting financial markets with cubes, graphs, and a clock on a black background.

The S&P 500 has been a reliable performer during times of economic growth, with returns of around 15% in the 1990s and 2000s. This is because the index is heavily weighted towards large-cap stocks, which tend to perform well in a growing economy.

However, the S&P 500 has also been known to be volatile, with some years seeing returns of -20% or more. This highlights the importance of diversification and a long-term perspective when investing in the index.

Historical data suggests that the S&P 500 has provided higher returns when the economy is growing, with an average return of 12% in years when GDP growth was above 3%. This is because a growing economy tends to lead to higher corporate profits and stock prices.

A key consideration for investors is the potential for interest rates to impact returns. According to historical data, the S&P 500 has provided higher returns when interest rates are low, with an average return of 13% in years when the 10-year Treasury yield was below 3%.

Frequently Asked Questions

Is there a 2X ETF for Meta?

Yes, there is a 2X ETF for Meta, specifically the Direxion Daily META Bull 2X Shares (METU), which aims to deliver 200% daily leveraged results. However, this comes with increased volatility compared to the underlying Meta performance.

Is Meta part of QQQ?

Yes, Meta is a holding in the Invesco QQQ ETF, which tracks the Nasdaq 100 Index dominated by big technology companies.

Emily Hilll

Writer

Emily Hill is a versatile writer with a passion for creating engaging content on a wide range of topics. Her expertise spans across various categories, including finance and investing. Emily's writing career has taken off with the publication of her informative articles on investing in Indian ETFs, showcasing her ability to break down complex subjects into accessible and easy-to-understand pieces.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.