UOB Asset Management (Taiwan), in first engagement with Solactive, launches ETF tracking Solactive Metaverse Technology and Services Index
The metaverse has been considered a driving force setting the stage for the future and, therefore, it is regarded as a massive prospect. Many big Techs start to see this revolutionary concept as their next direction of development. Morgan Stanley predicts that the metaverse is an $8.3 trillion market opportunity depending on the level of its development[1]. JPMorgan forecasts similar order of magnitude[2]. Many financial institutions increasingly see the Metaverse as quickly becoming a viable long-term investment opportunity. In a strategic move within this field, UOB Asset Management (Taiwan) launches the United Metaverse Technology and Services ETF, which aims to track the Solactive Metaverse Technology and Services Index.
The index constituents are a representation of companies that potentially stand to benefit from the adoption and use of technologies and services expected to grow and support the functioning of the metaverse and related industries. Eligible constituents belong to the following segments: metaverse technology, metaverse platforms, metaverse devices, interchange standards, data processing, gaming hardware, gaming software, and online gaming platforms (but excluding companies exposed to casino and betting related activities).
The selection procedure of the Solactive Metaverse Technology and Services Index uses Solactive’s proprietary big data and in-house developed natural language processing (NLP) algorithm ARTIS®. ARTIS® utilizes state-of-the-art algorithms to parse high volumes of public documents to evaluate companies’ exposures that are hidden when relying on conventional approaches. Each company identified by the algorithm receives a score that reflects its exposure to the index strategy. The resulting set of companies is then reviewed to ensure relevance to the theme based on business operations.
The United Metaverse Technology and Services ETF started trading on May 17th, 2022, under stock code 00906 on the Taiwan Stock Exchange.
Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “We are very excited to see our activities quickly expand further in the Asian region. With UOB Asset Management, one of the leading financial institutions throughout Asia, we have yet again found another trusted partner that shares our spirit for innovation, and with whom we could collaborate to develop the next cutting-edge product. It was a great pleasure to work with their Taiwan team, and we look forward to jointly launching additional products for Asia’s fast-growing investment community.”
[1] https://www.morganstanley.com/ideas/global-stock-trends-2022
[2] https://www.jpmorgan.com/content/dam/jpm/treasury-services/documents/opportunities-in-the-metaverse.pdf