Rather than trying to pick individual winners, these funds give you exposure to entire industries and regions that are shaping the future. The key is finding ETFs with strong tailwinds and unique angles that could drive long-term growth.

Here are three fantastic ASX ETFs to consider right now.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF that stands out is the BetaShares Asia Technology Tigers ETF.

While many investors focus heavily on US tech, this fund offers exposure to a different engine of global growth. It targets leading technology companies across Asia, a region with rapidly expanding digital economies and massive populations.

Key holdings include Tencent Holdings (SEHK: 700), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), and Alibaba Group (NYSE: BABA).

What makes the BetaShares Asia Technology Tigers ETF interesting right now is the potential for a shift in sentiment. Asian tech has lagged in recent years due to regulatory and macro concerns, but the long-term growth story remains intact.

If conditions stabilise, this could be a part of the market that surprises on the upside.

The team at BetaShares recently recommended this fund.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

Another ASX ETF that could be worth considering is the VanEck Video Gaming and Esports ETF.

This fund is not just about gaming in the traditional sense. It is a play on interactive entertainment, digital ecosystems, and how people spend their time and money online.

Its holdings include NVIDIA (NASDAQ: NVDA), Nintendo, and Roblox (NYSE: RBLX).

What sets this ETF apart is its exposure to both the creators and enablers of gaming. From chipmakers powering graphics to developers building immersive experiences, it captures the full value chain.

As gaming continues to evolve into a global, always-on form of entertainment, the VanEck Video Gaming and Esports ETF offers a way to participate in that shift.

This fund was recently recommended by analysts at VanEck.

Betashares Global Robotics And Artificial Intelligence ETF (ASX: RBTZ)

A third ASX ETF that looks compelling is the Betashares Global Robotics And Artificial Intelligence ETF.

This fund provides exposure to companies leading the automation and AI revolution. This includes businesses involved in robotics, machine learning, and industrial automation.

Among its holdings are Intuitive Surgical (NASDAQ: ISRG), Keyence Corporation, and ABB Ltd (SWX: ABBN).

Rather than focusing on a single application of AI, this ETF spreads exposure across multiple industries where automation is becoming essential.

From manufacturing to healthcare, these technologies are transforming how work gets done. That gives the Betashares Global Robotics And Artificial Intelligence ETF a broad and durable growth runway.

This fund was also recently recommended by analysts at BetaShares.

The post 3 fantastic ASX ETFs to buy this month appeared first on The Motley Fool Australia.

Contrary to popular belief, the metaverse is not a new notion. The term was coined by bestselling author Neil Stephenson in his science fiction novel Snow Crash all the way back in 1992. That said, there's no doubt that the concept has been generating more headlines of late as a host of businesses race to cash in on this idea of a persistent 3D virtual world backed by technologies including virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and blockchain.

Generally speaking, investors tend to view metaverse-centric companies such as Roblox Corporation (NYSE: RBLX) and Unity Software as riskier investments, but there are some exceptions. Let's have a look at two safer stocks that offer investors a great chance to profit from the creation of the metaverse. And by safe, I mean these companies are already strongly profitable and cash-flow positive, but still have tremendous upside potential in the metaverse arena.

1. Nvidia 

Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs) and system-on-a-chip products are widely relied upon for gaming and 3D simulation, cryptocurrency mining, and the development of other business applications, many of which will be foundational to the metaverse. Likewise, its on-the-rise NVIDIA Omniverse platform has a chance to revolutionize the world as we know it. In essence, Omniverse is a platform designed for 3D real-time simulation and design collaboration. For example, BMW Group has used the platform to design a future car factory, creating and simulating an exact "digital twin" of the facility. Between Nvidia's hardware and its Omniverse platform, it's one of the companies with the most potential upside in the metaverse.

In its fiscal 2023 first quarter, which ended May 1, Nvidia's total sales soared 46.4% year over year to $8.3 billion, and its adjusted earnings per share increased 49.5% to $1.36. On the profitability front, its adjusted gross and operating margins expanded by 90 and 255 basis points, respectively, to 67.1% and 47.7%. During the quarter, the tech giant also generated $1.4 billion in free cash flow, bringing its total over the past 12 months to $7.9 billion. As of the end of the quarter, Nvidia had $20.3 billion in cash and marketable securities on the books. For the year, Wall Street analysts expect the company's revenues and earnings to climb by 23.9% and 20.3%, respectively, to $33.3 billion and $5.34 per share.

Those are rock-solid growth rates, and given that its shares have plunged by 36% since the start of 2022 and its current price-to-earnings ratio of 50.9 is well below its 5-year average of 59.0, Nvidia appears to be a smart investment today. 

2. Meta Platforms

As evidenced by its name change from Facebook to Meta Platforms (NASDAQ: META), this company is fully committed to its metaverse transformation. The social media giant's Reality Labs business segment is focused on developing VR and AR hardware and software, such as its Oculus Quest 2 headset, in addition to other metaverse platforms like Horizon Worlds. In the second quarter, Meta's research and development spending rose by 42.6% year over year to $8.7 billion as it continued to ramp up its investments in the space. Meanwhile, Reality Labs booked a $2.8 billion operating loss, wider than its $2.4 billion loss in the same quarter a year ago.

It will take time for the company's metaverse plans to come to fruition, but investors shouldn't fret. The social media king has $40.5 billion in cash and marketable securities on the books, and has generated $35.8 billion in free cash flow over the past year. And its revenue from advertising -- the backbone of its business -- totaled $28.2 billion in the quarter, equal to 98% of total sales.

In short, Meta is well-funded to further its metaverse ambitions, all while enjoying a steady stream of income from its world-class ad business via its Facebook platform. Today, the Facebook platform boasts 2.9 billion monthly active users, equal to more than one-third of the global population. And similar to Nvidia, Meta has had a rough year in the stock market up to this point. Its shares have fallen by about 50% since the beginning of 2022. That has dragged its price-to-earnings ratio down to an all-time low of 13.6, well below its five-year average of 27.9. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here are 2 safe Metaverse stocks for risk-averse investors appeared first on The Motley Fool Australia.

The term describes what used to be referred to as 'virtual reality'. The metaverse concept elevates that old idea to a broader base that, in the future, might represent the entire internet as a massive unified virtual world.

Zuckerberg is so sure the world is destined for the metaverse that in October last year he renamed Facebook Meta Platforms Inc (NASDAQ: META).

"The metaverse is the next frontier in connecting people, just like social networking was when we got started," he wrote in a letter at the time.

"Our hope is that within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers."

So how can investors buy ASX shares for exposure to this trend?

A new ETF to take advantage of the theme

The answer to this question became a whole lot easier this week as BetaShares launched a new exchange-traded fund (ETF) that represents a global basket of Metaverse stocks.

The BetaShares Metaverse ETF (ASX: MTAV) will start trading on the ASX on Thursday.

BetaShares chief executive Alex Vynokur said the metaverse is "a powerful megatrend" forecast to "shake up" how the world communicates.

"This secular trend is expected to revolutionise the way we engage with sport, live music and other ways of staying connected."

He added that the industry is still "in the early stages of evolution".

"We are proud to provide investors with access to this investment opportunity," he said. 

"This innovative new fund will form part of our leading suite of thematic funds that offer investors exposure to the megatrends that are changing the world around us."

Which stocks will be in the MTAV ETF?

The BetaShares Metaverse ETF will track the Bloomberg Metaverse Select Index, which currently contains 32 stocks from around the world.

The contributing companies are from a variety of industries — not just software. Examples include NVIDIA Corporation (NASDAQ: NVDA), Roblox Corp (NYSE: RBLX), and Apple Inc (NASDAQ: AAPL).

BetaShares stated the fund exposes investors to "both large, profitable technology and entertainment companies, as well as more specialised companies".

The fund is the "the first exchange traded fund of its kind in Australia", it added.

The ETF will charge investors 0.69% per year of its net asset value.

The post How to buy ASX shares exposed to the metaverse appeared first on The Motley Fool Australia.

Roblox (NYSE: RBLX) experienced a surge of new customers and engagement at the pandemic's onset. The metaverse pioneer caters to the younger generation, many of whom were suddenly forced to spend most of their time at home. 

Thankfully, several effective vaccines against COVID-19 have been developed, and governments are increasingly removing pandemic-related restrictions. While it's good for humanity, the ongoing economic reopening has been bad news for Roblox. Let's look at the worsening trends for the metaverse stock. 

Headwinds are persisting for Roblox 

In its most recent update on March 15, Roblox said that bookings in February decreased by about 3% from the same month last year. Bookings are customer deposits to purchase an in-game currency called Robux, which eventually becomes revenue when players spend it on gameplay. Therefore, a decrease in bookings indicates a headwind to revenue. Average bookings per daily active user, which considers user totals, decreased by about 25% in February from the same month of the prior year.

The metric started falling in the second quarter of 2021 when economic reopening gained momentum and schools started bringing students back to classrooms. Management thinks the headwinds will continue through the middle of the year and then begin improving around June.

Beyond player deposits, engagement -- that is, the amount of time spent on the site -- is also falling. In its most profitable U.S. and Canada markets, engagement fell from about 3.2 billion hours in the first quarter of 2021 to 2.5 billion in the fourth quarter of 2021. Similarly, daily active users from the region fell from 12.6 million to 11.2 million in that same period. Management might be predicting a turnaround in the middle of the year, but there is no certainty that will be the case.

The future remains as yet unclear. On the one hand, economies might be reopening, and people are leaving their homes more often. At the same time, the pandemic is far from over. Hundreds of thousands of people are testing positive for COVID-19 daily, and tragically large numbers are becoming hospitalized and worse. All that means the world can do more in the battle against COVID-19.

As progress against the virus does occur and people and families return to pre-pandemic habits, this will be a challenge for Roblox. So on the surface, it looks as though management's estimate of engagement turning around mid-year might be on the optimistic side. 

A lower price leaves a margin of safety 

Roblox's stock is paying the price for the headwinds. It's down 65% from the high reached late in 2021 and 55% year to date in 2022. Judging by the crashing price, the market expects troubling trends to persist a while longer.

Trying to time precisely when things will turn around can be a daunting task and one that few people can do. Instead, investors can look to Roblox's price-to-sales ratio and price-to-free-cash-flow ratio of 12.2 and 42, respectively. According to those metrics, Roblox stock has hardly ever been cheaper. Of course, that doesn't mean that it cannot go lower, but the discount gives investors a margin of safety if the headwinds persist longer than expected. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Troubling trends continue for this beaten-down Metaverse stock appeared first on The Motley Fool Australia.

These days, it seems like every company has some grand ideas for the "metaverse," which will merge the physical and digital worlds. Some companies are starting small by selling non-fungible tokens (NFTs) for virtual goods, while others are planning to build entire virtual worlds.

All that noise can make it hard to distinguish the hype from the reality. So today, I'll take a look at four companies that could actually benefit from this secular trend and permanently transform how we interact with each other.

1. Meta Platforms

Meta Platforms (NASDAQ: FB), the company formerly known as Facebook, adopted its new name to reflect its long-term focus on the metaverse. It already has many of the building blocks to construct that virtual world.

A whopping 3.58 billion people already use at least one of its apps (Facebook, Messenger, Instagram, or WhatsApp) every month. It's reportedly sold over 10 million Quest 2 VR headsets over the past year, and it just launched Horizon Worlds -- a VR world that will enable those headset users to interact with each other. It recently released its first pair of smart glasses, and it plans to launch more advanced AR headsets in the future.

As Meta puts all those pieces together, it will expand its reach far beyond PCs and mobile devices. People will eventually be visiting each other's profiles in VR or using its AR tools to scan real-life objects. In other words, it could transform the entire world into one big computing platform.

2. Roblox

Roblox's (NYSE: RBLX) ambitions aren't as grand as Meta's, but they're easier to understand. Roblox's platform enables its users to create simple block-based environments and games for each other without any coding knowledge. It's tremendously popular with children, and its creators can monetize their games with an in-game currency called Robux.

Roblox is a self-sufficient ecosystem because it relies on its audience of nearly 50 million daily active users to create and explore new virtual worlds. The expansion of that ecosystem will convince more companies to build their own worlds within Roblox's universe to reach more consumers.

That's why Nike (NYSE: NKE) just launched a virtual theme park called Nikeland on Roblox, which lets players compete in virtual sporting events. If more brands follow Nike's lead, these metaverse-based promotions could become much more important than traditional marketing campaigns.

3. Nintendo

The Japanese gaming giant Nintendo (OTC: NTDOY) also owns many of the ingredients to create a massive metaverse ecosystem. It's shipped 98.1 million Switches since March 2017, and those hybrid devices can be easily converted between home console and handheld modes.

Carrying a Switch around is less cumbersome than wearing a VR headset, and the devices can also be converted into VR headsets with a Labo kit. That versatility makes the Switch an ideal platform to launch immersive multiplayer games like Animal Crossing: New Horizons.

Nintendo has already shipped nearly 35 million copies of Animal Crossing: New Horizons worldwide, and the hit game is already a mini-metaverse that allows players to own homes, perform jobs to earn an in-game currency, and socialize with other players. That foundation could lead to the development of other Switch-based metaverse experiences in the future.

4. Match Group

Match Group (NASDAQ: MTCH), the online dating giant that owns Tinder and more than a dozen popular dating apps, serves over 16 million paying users worldwide. On their own, Match's dating apps can already be considered metaverse products that help people meet each other digitally.

However, Match has much bigger plans for the metaverse. It's currently testing out a new feature called Single Town across college campuses in Seoul, South Korea. The app enables its users to communicate with each other through digital avatars in virtual environments like a bar or a park. It's a bit like a dating-oriented version of Animal Crossing.

During last quarter's conference call, CEO Shar Dubey said Match was seeing "encouraging early signals" in terms of engagement rates among Gen Z users on Single Town -- which strongly suggests we might see similar game-like features for its other dating apps in the near future.

It's not just a hot new buzzword

It's tempting to dismiss the metaverse as another hot tech buzzword that tethers existing technologies like multiplayer games, persistent online worlds, and virtual goods to the AR and VR markets.

However, the metaverse can fundamentally change how we interact with each other -- as Meta, Roblox, Nintendo, and Match are now demonstrating. These efforts might not boost their near-term revenue, but they could help them eventually evolve into very different companies over the long term. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 4 monster Metaverse stocks for the long haul appeared first on The Motley Fool Australia.

The metaverse is gaining popularity among consumers and investors after the company formerly known as Facebook announced it was making a significant investment in resources to become a metaverse leader. Now known as Meta Platforms (NASDAQ: FB), the company that started all the commotion is one of my favorite metaverse stocks to buy in 2022.  

My other favorite is one of the pioneers of the metaverse, Roblox (NYSE: RBLX). The company is a favorite with kids 16 and younger although it's increasingly being adopted by an older demographic as well. What follows is a more detailed look into what makes these two my metaverse stock picks for 2022. 

Meta Platforms 

Already the titan of the social-media world, Meta Platforms has made a bold move into the metaverse industry. The company announced it will have spent at least $10 billion on the expansion in fiscal 2021 and is likely to spend more in the years to follow. The move could be in response to decelerating revenue growth in the company's core social-media business.

CEO Mark Zuckerberg has said the metaverse is something he's long been interested in, and the timing could be perfect right now. Zuckerberg also said that he aims to help over 1 billion people be active on the metaverse before the decade is over.  While this is a bold ambition, it's not an unreasonable one from someone leading a company with over 3.5 billion monthly active users across its family of apps, including Facebook, Instagram, and WhatsApp.

What's more, Meta Platforms has the resources to invest in growing its new line of business. Between 2016 and 2020, the company has generated over $100 billion in operating income. And as of Sept. 30, Meta Platforms had over $58 billion in cash and equivalents on its balance sheet.

Roblox

While Meta Platforms is just now building its metaverse, Roblox has had a several-year head start. Roblox's metaverse platform has been primarily focused on kids and teenagers -- 48.9% of its daily active users are 13 years old or younger. It is growing users at a healthy rate, from 18.4 million in the third quarter of 2019 to 47.3 million in its most recent quarter ended Sept. 30.

Roblox is free to join and generates revenue by selling an in-game currency called Robux. The company is perhaps demonstrating the lucrative, cash-generating ability of the metaverse. It earned $181 million in cash flow from operations on revenue of $509 million in the third quarter. That's even before Roblox has developed a mechanism for generating income from players that never deposit money on the platform.

Nevertheless, Roblox increased revenue by over 100% in the third quarter. If the company can find a way to earn revenue from non-paying players -- for instance, showing them advertisements -- this could be a catalyst for boosting revenue growth even higher.

The metaverse industry is in its infancy and could spend decades expanding. Investing in metaverse stocks could be risky, but the potential reward could be worth the risk. For those of who want to dive into it in 2022, Meta Platforms and Roblox are my two favorite stocks to buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 Metaverse stocks to watch in 2022 appeared first on The Motley Fool Australia.

CommSec is among the most popular share trading platforms in the country. As such, the data it gives us can be a useful snapshot into the mind of the average Aussie investor.

Today, we have already looked at the most popular ASX shares last week. So here are the top 10 United States shares CommSec customers were buying last week. This week's data covers 8-12 March. 

GameStop shares among most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.6% of total trades with an 81%/19% buy-to-sell ratio.
2. GameStop Corp (NYSE: GME) – representing 5.4% of total trades with a 51%/49% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.8% of total trades with an 83%/17% buy-to-sell ratio.
4. Nio Inc (NYSE: NIO) – representing 2.6% of total trades with a 76%/24% buy-to-sell ratio.
5. Palantir Technologies Inc (NYSE: PLTR) – representing 1.8% of total trades with an 84%/16% buy-to-sell ratio
6. Roblox Corp (NYSE: RBLX)
7. ARK Innovation ETF (NYSE: ARKK)
8. AMC Entertainment Holdings Inc (NYSE: AMC)
9. Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM)
   
10. Microsoft Corporation (NASDAQ: MSFT)

What can we learn from these trades?

Well, GameStop certainly knows how to excite Aussie investors, that's for sure. GameStop was on last week's list, at the number four spot with a buy/sell ratio of 68%/32% to be precise. So it's interesting to see a convergence of buyers and sellers.

Since 5 March (the end of last week's covered period), the GameStop share price is up another 59% on current pricing, but has also lost around 17% of its value since 10 March. It seems that is enough to get half of its Aussie investors to move to take their profits off of the table.

Outside GameStop, electric vehicle and battery manufacturers Tesla and Nio remain as popular as ever. Both companies have been recovering somewhat after being hard-hit in the US tech selloff of the past month or so.

It's also interesting to see that data company Palantir remains popular with Aussies, even though the company is still down around 30% from where it was on 9 February.

Some new faces this week are Roblox and Taiwan Semiconductor. Taiwan Semiconductor is a massive high-flying chip manufacturer that has recently come off the boil. It was down close to 20% from it's February peak at one point, so clearly some Aussies are seeing a bargain here.

Roblox is a new gaming company that has only just IPOed in the past week on the US markets. Clearly, Aussies have been excited to get aboard this train.

At the time of writing, Roblox stock remains around 3.8% above the level it debuted on the New York Stock Exchange at, so it's been a winner so far.

The post ASX investors still can't get enough of GameStop (NYSE:GME) shares appeared first on The Motley Fool Australia.

The game platform boasts nearly 200 million monthly active users. For somewhat of a comparison, Call of Duty, which is owned by Activision Blizzard Inc (NASDAQ: ATVI) recorded 100 million monthly active users in the last months of 2020.

Roblox matches the description

Since this exchange-traded fund (ETF) is an actively managed fund, ARK Invest posts its position changes daily. As a result, we now know that Cathie Wood's ARK Next Generation Internet ETF (NYSE: ARKW) nabbed 519,086 Roblox shares on the IPO day. But you might be asking why?

It might be hard to see how a digital world could be worth investing in. Furthermore, how Roblox could justify its now $40 billion market capitalisation – that's right, just under half the size of Westpac Banking Corp (ASX: WBC).

Well for starters, there's a lot of people playing the game. As this audience purchases in-game items, Roblox gains revenue – and lots of it! Roblox is expecting to hit US$1.5 billion in revenue for the year by the end of 2021.

Roblox also fits into one of ARK's 'Big Ideas 2021' virtual worlds. By ARK's definition, virtual worlds consist of video games, augmented reality, and virtual reality. Roblox is a virtual world, where people interact with each other through over 50 million user-created meta-games.

According to ARK, revenue from virtual worlds will compound at an annual rate of 17%, from US$180 billion at present to US$390 billion by 2025.

According to ARK, video games aren't just for fun, they're part of virtual worlds and investors should pay attention! Find out why in #BigIdeas2021. https://t.co/CjHbyYxBjK pic.twitter.com/ctM4lUSJTR

— ARK Invest (@ARKInvest) February 5, 2021

Video games becoming the 'third place'

In ARK's big ideas presentation, it notes the concept of the 'third place'. A place that is separate from home and work, that people are creating a life around.

According to ARK's research, time spent on video games for the average person will increase from 1.1 hours per day to 1.5 hours in the next five years. If this does in fact transpire, it will mean more time and likely more money being spent within these virtual environments. 

This trend was certainly catapulted forward by the COVID-19 pandemic. According to Verizon, video game internet traffic increased by 75% in America during lockdowns. Gaming giants like Roblox benefitted strongly from the circumstances, and growth doesn't appear to be slowing down. For the first quarter of FY21, Roblox expects revenue to double to US$320 million. 

Based on ARK's latest filing, Roblox holds a weighting of 0.47% in the next generation ETF. Will Cathie Wood increase its holding of Roblox shares, we will be watching to see. 

The post Roblox shares added to ARK Next Generation fund, but why? appeared first on The Motley Fool Australia.

Roblox (NYSE: RBLX), the world's most popular gaming site for children, debuted on the public markets on Wednesday, initially soaring more than 42% from its reference price of $45 set by the New York Stock Exchange, roughly the same price paid by private investors earlier this year. 

Roblox shares began trading at approximately 1:33 p.m. EST at $64.25, gaining as much as 52% in the minutes following its debut. As of this writing, the stock is still gaining ground, up 64% to about $73.80, valuing the company at roughly $46 billion. 

The company's gaming platform has been a hit with the tween crowd. Roblox's 32.6 million daily active users (DAUs) grew 85% year over year in 2020. Engagement also soared, as hours spent increased 124% to 30.6 billion hours, or roughly 2.6 hours per user per day.

In recent filings with the Securities and Exchange Commission (SEC), Roblox said that for the year ended Dec. 31, 2020, it generated revenue of $924 million, up 82% year over year, accelerating from 56% growth in 2019. Losses also grew at a rapid clip, with a net loss of nearly $258 million, worsening from a loss of $71 million in 2019. 

Roblox originally planned its initial public offering (IPO) in December, but the company postponed its debut in the face of triple-digit opening-day stock-price gains by companies including C3.ai (NYSE: AI) and Airbnb (NASDAQ: ABNB), which gained 120% and 112%, respectively, on their first day of trading. This made the pricing of its shares more difficult, with companies leaving billions of dollars on the table.

In light of the uncertainty, Roblox eventually settled on a direct public offering (DPO), or direct listing, hoping it would gain greater control over the pricing in the process.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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