Samsung Asset Management is set to launch a new thematic equity ETF in Hong Kong providing exposure to companies in the Asia Pacific region that are developing and enabling the metaverse.

The metaverse refers to a future iteration of the internet comprising a perceived virtual universe.

The Samsung Asia Pacific ex NZ Metaverse Theme ETF (3172 HK) is due to list on the Stock Exchange of Hong Kong in Hong Kong dollars on 7 July.

The metaverse is a term used to describe the concept of a future iteration of the internet, made up of persistent, shared, 3D virtual spaces linked into a perceived virtual universe.

The metaverse is expected to be richly integrated into the physical world, thereby creating a new medium and economy for work, leisure, and innovation, while transforming long-standing industries and markets such as finance, banking, retail, education, health, and fitness, among many others.

While still in its infancy, the metaverse has already attracted billions of dollars of investment with analysts predicting the segment could generate trillions of dollars in global revenues, depending on the level of disruption.

Investment approach

The ETF, which will be actively managed, is expected to target firms involved in several next-generation technology categories linked to the metaverse. These include augmented & virtual reality, artificial intelligence, social media, online gaming, digital transactions, and devices, platforms and content.

Samsung will consider both a company’s current business activities as well as its future pipeline of products and projects when selecting stocks.

Constituents will be drawn from across the APAC region, excluding stocks listed in New Zealand. Up to 30% of the fund’s assets may be invested in Chinese A shares, including those listed on the Science and Technology Innovation Board (STAR Market) of the Shanghai Stock Exchange.

The ETF will come with an expense ratio of 0.85%.