Simeon Hyman, Chief Investment Strategist at ProShares, joins Cheddar News' Closing Bell, where he explains why his firm launched the Proshares Metaverse ETF today and how this portfolio offers the opportunity for success both now and in the future.

Closing Bell

ProShares Launches Metaverse ETF to Give Investors Access to Next Big Opportunity

alright, pro shares making history last october when it debuted the first Bitcoin futures E T F. And the platform at making more headlines today. Pro shares debuting its new metaverse E T F which is designed to give investors access to leading companies shaping the next frontier of digital interaction. So joining me now is Simeon, Hyman Global Investment strategist at pro shares Simeon, it's good to see you, thank you. What is this E T F. All about. So it's tinker V E R S and will pronounce adverse to go along with metaverse and you know as you indicated we designed it to capture that evolving metaverse opportunity and you've got to cut across a bunch of different technology focuses segments of the market. You know if you look at the constituents of this CTF, it almost looks like a timeline of innovation, you go all the way back to Microsoft but then you have a video and then you have of course meta but you also have newer, important entrance like roadblocks and even more recently Unity. So the idea here is to capture the broadest range of companies that are making money today in what is a half a trillion dollar metaverse today but will also give the opportunity to participate in the metaverse of tomorrow. There is another metaverse, at least one other a metaverse that is publicly traded. That ticker symbol is meta, how does this offer simeon differ from that meta E T F. We think we did this right, we think we have the right combination of breath and diversity but making sure that there is a focus on the companies that are really making that money in the metaverse. So you have a combination of of looking for revenues actually attached to the metaverse, but also understanding that larger companies may have some advantages. So we blend that and end up with a very effective portfolio, which for example is about one third mangos and mangos is a little bit different than fangs. So first there's two M's, there's Microsoft um and meta and the end is for NVIDIA, but you've got one third for those larger players that everybody kind of knows. But there's also two thirds of this portfolio with those, some of those smaller companies and companies that are emerging not just the ones I mentioned, but also companies like Agora and views six. So it really is designed to acknowledge that this opportunity will evolve today. The metaverse is immersive but not quite connected. And the companies that are making money today in live gaming in in interactive social media and invert in immersive, live music venues, those kinds of things are making a lot of money but we don't know exactly what that next phase will be. So that diversified approaches, important. Quick question. We all know the metaverse is arguably the hottest space right now, a lot of investment dollars, a lot of consumer interests as well, but it is a new E. T. F. Of course will grow over time. I'm sure any risks risk factors that investors should be aware of early on in the game. Well, you know, the E. T. F. Of course it's as as um in the jargon, it's a 40 act funds. So this is kind of a regular E. T. F. Which means that all the efficiencies and transparency of trading that's involved with an E. T. F are all there and that's important for investors to understand and have comfort um in owning and trading it. Um But indeed of course it is an investment in uh in in equities that um certainly have some volatility associated with them. So investors should know that. But that's also to some extent of feature and not just and not really just a bug because think about this inflationary environment that we're in, you have to have some tickets to growth opportunities so that your portfolio has the chance to grow and offset some of those inflationary and rising interest rate implications that we're facing. Okay, first we're gonna check it out, send me and you have to come back on the show. I know this is a super hot space as we've been discussing. We appreciate the time that's Simeon Hyman global investment strategist at pro shares