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ARVR - ETF AI Analysis

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ARVR

First Trust Indxx Metaverse ETF (ARVR)

Rating:66Neutral
Price Target:
ARVR’s rating suggests it is a solid but not top-tier ETF, supported by strong core holdings like Microsoft, Apple, Nvidia, Meta, and Adobe, which all benefit from robust financial performance, growth in AI and cloud or digital services, and generally positive outlooks. However, some holdings such as Xiaomi and Nintendo face bearish technical trends or potential overvaluation, and several major positions share the common risk of high valuations and exposure to similar tech and AI themes, which can increase volatility if that sector falls out of favor.
Positive Factors
Broad Global Exposure
The fund invests across several major markets, including the U.S., Japan, Hong Kong, South Korea, and Italy, which helps spread country-specific risk.
Metaverse-Focused Tech and Communication Mix
Heavy exposure to technology and communication services aligns the ETF with companies that are central to metaverse and digital-experience trends.
Solid Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing that its metaverse-focused strategy has recently been rewarded by the market.
Negative Factors
High Expense Ratio
The fund’s relatively high fee means more of the investment return is eaten up by costs compared with many broad-market ETFs.
Concentrated in Tech and Communication
With most assets in just two sectors, the ETF is highly sensitive to downturns in technology and communication services stocks.
Several Weak Top Holdings
Many of the largest positions, including well-known names like Xiaomi, Microsoft, Tencent, Adobe, Meta, and Sony, have shown weak or negative performance this year, which can drag on the fund’s results.

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

ARVR Summary

ARVR is the First Trust Indxx Metaverse ETF, built to follow the Indxx Metaverse Index and focus on companies shaping the future of virtual and digital worlds. It mainly holds technology and communication firms involved in AR/VR, 3D graphics, and online platforms. Well-known names in the fund include Apple, Microsoft, Nvidia, Meta Platforms, and Sony. Investors might consider ARVR for growth potential and diversification across many metaverse-related companies instead of picking single stocks. A key risk is that it is heavily tied to tech and metaverse trends, so its price can rise or fall sharply with changes in that sector.
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 essentially a bet on the digital playground of the future, with Big Tech and gaming names steering the ship. Apple and Nvidia have been rising, giving the fund a solid backbone in hardware and AI, while Adobe and Microsoft look more mixed as investors reassess pricey software and cloud stories. On the entertainment side, Electronic Arts and Zoom are steady contributors, but Japanese gaming giants like Nexon, Sony, and Nintendo have been lagging, acting as a brake. Overall, it’s a globally diversified, tech-heavy metaverse theme with notable concentration in U.S. and Asian innovators.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Unity Software4.31%$243.64K$18.92B29.86%
65
Neutral
Microsoft4.05%$228.74K$3.71T-3.01%
79
Outperform
Adobe3.77%$212.91K$105.42B-18.19%
80
Outperform
Zoom Video Communications3.67%$207.22K$30.64B53.65%
81
Outperform
Nintendo Co3.62%$204.43K¥9.27T-45.01%
63
Neutral
Sony3.46%$195.41K¥22.05T-7.44%
73
Outperform
NEXON Co3.41%$192.38K¥1.88T-25.24%
76
Outperform
Xiaomi3.39%$191.37KHK$694.80B-45.07%
71
Outperform
Nvidia3.30%$186.44K$5.42T19.49%
76
Outperform
Amphenol3.18%$179.61K$208.60B52.72%
78
Outperform

ARVR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
55.55
Positive
100DMA
53.25
Positive
200DMA
50.76
Positive
Market Momentum
MACD
0.56
Negative
RSI
61.37
Neutral
STOCH
87.58
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 55.16, equal to the 50-day MA of 55.55, and equal to the 200-day MA of 50.76, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 87.58 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
$5.61M0.70%
66
Neutral
$97.76M0.50%
60
Neutral
$92.52M0.65%
63
Neutral
$91.74M0.50%
68
Neutral
$46.47M0.39%
67
Neutral
$7.88M0.58%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARVR
First Trust Indxx Metaverse ETF
57.66
9.88
20.68%
CSNR
Cohen & Steers Natural Resources Active ETF
SOCL
Global X Social Media ETF
IQM
Franklin Intelligent Machines ETF
FMET
Fidelity Metaverse ETF
VERS
ProShares Metaverse 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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