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ARVR - ETF AI Analysis

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ARVR

First Trust Indxx Metaverse ETF (ARVR)

Rating:68Neutral
Price Target:
ARVR, the First Trust Indxx Metaverse ETF, has a solid overall rating, mainly because many of its largest holdings like Micron, Qualcomm, Texas Instruments, Zoom, Synopsys, and Nvidia show strong financial performance, positive earnings calls, and strategic positioning in high-growth areas such as AI, data centers, and advanced chips. However, weaker names like Microchip and Intel, which face profitability, valuation, and technical challenges, slightly weigh on the fund, and the heavy tilt toward semiconductor and tech-related companies means investors are exposed to sector-specific volatility and valuation risk.
Positive Factors
Strong Chipmaker Holdings
Several major semiconductor stocks in the top holdings have shown strong gains, helping support the ETF’s recent results.
Metaverse-Focused Tech Exposure
The fund is heavily tilted toward technology and communication services companies that are central to metaverse and digital infrastructure themes.
Global but U.S.-Led Portfolio
While most assets are in U.S. companies, the ETF also includes meaningful exposure to Japan, Hong Kong, and France, adding some international diversification.
Negative Factors
High Expense Ratio
The ETF charges a relatively high fee, which can eat into long-term returns compared with lower-cost funds.
Sector Concentration in Tech and Communication
More than half of the portfolio is in technology and a large portion in communication services, making the fund sensitive to downturns in these areas.
Mixed Performance Among Top Holdings
Some of the largest positions, including big software and gaming names, have shown weak or negative performance, which can drag on the ETF’s overall returns.

ARVR vs. SPDR S&P 500 ETF (SPY)

ARVR Summary

The First Trust Indxx Metaverse ETF (ARVR) is a fund that follows the Indxx Metaverse Index, focusing on companies building the “metaverse” – virtual worlds, online games, and the hardware and software that power them. It holds well-known tech names like Microsoft and Nvidia, along with gaming and chip companies such as Roblox and Advanced Micro Devices. Someone might invest in ARVR to seek long-term growth from the expansion of virtual reality, online gaming, and digital experiences, while getting diversification across many metaverse-related stocks. A key risk is that it is heavily focused on tech and metaverse themes, so its price can be very volatile and may fall sharply if this trend slows.
How much will it cost me?The First Trust Indxx Metaverse ETF (ARVR) has an expense ratio of 0.7%, which means you’ll pay $7 per year for every $1,000 invested. This is higher than average because it is an actively managed fund, focusing on a specialized theme like the metaverse, which requires more research and management compared to passively managed funds.
What would affect this ETF?The ARVR ETF could benefit from growing interest in the metaverse and advancements in technology, such as AR/VR hardware and software, which align with its focus on the technology and communication services sectors. However, it may face challenges from economic downturns, regulatory changes, or slower-than-expected adoption of metaverse technologies, which could negatively impact its top holdings like Apple, Roblox, and Qualcomm.

ARVR Top 10 Holdings

ARVR is leaning hard into the metaverse’s plumbing, with chipmakers and software names doing most of the heavy lifting. Nvidia, AMD, Texas Instruments, and STMicroelectronics have been rising, giving the fund a solid boost from the semiconductor side of the story. Microsoft and Synopsys look steadier but a bit mixed lately, while Microchip is improving but still wrestling with profitability. On the flip side, Roblox and Take-Two are dragging, as their metaverse dreams haven’t yet translated into strong stock momentum. Overall, it’s a globally diversified, tech-heavy bet on virtual worlds.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Intel5.19%$282.47K$606.19B434.62%
64
Neutral
Advanced Micro Devices5.03%$273.91K$730.98B298.62%
73
Outperform
Micron4.83%$262.94K$864.50B690.86%
79
Outperform
Qualcomm4.37%$237.86K$221.67B38.96%
80
Outperform
STMicroelectronics NV3.88%$211.30K€42.52B113.25%
71
Outperform
Microchip3.65%$198.43K$52.87B56.82%
54
Neutral
Texas Instruments3.65%$198.35K$268.63B56.84%
78
Outperform
Synopsys3.37%$183.22K$98.31B-0.48%
73
Outperform
Zoom Video Communications3.25%$177.09K$30.34B23.78%
81
Outperform
Nvidia3.19%$173.53K$5.36T69.92%
76
Outperform

ARVR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
48.31
Positive
100DMA
48.44
Positive
200DMA
48.71
Positive
Market Momentum
MACD
2.02
Negative
RSI
73.05
Negative
STOCH
81.35
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ARVR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 52.41, equal to the 50-day MA of 48.31, and equal to the 200-day MA of 48.71, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 73.05 is Negative, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARVR.

ARVR Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$5.45M0.70%
68
Neutral
$99.19M0.47%
52
Neutral
$45.98M0.39%
66
Neutral
$8.25M0.47%
57
Neutral
$6.68M0.58%
67
Neutral
$6.42M0.85%
58
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARVR
First Trust Indxx Metaverse ETF
55.04
12.68
29.93%
IBLC
iShares Blockchain and Tech ETF
FMET
Fidelity Metaverse ETF
IVRS
iShares Future Metaverse Tech and Communications ETF
VERS
ProShares Metaverse ETF
BWEB
Bitwise Web3 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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