how can i invest in virtual reality – diverse options to invest in the promising virtual reality sector

Virtual reality (VR) has shown immense potential in recent years, with the technology being applied in fields like gaming, entertainment, healthcare, education, and more. As VR continues to evolve, many investors are keen to capitalize on the growth opportunities in this sector. There are several ways investors can gain exposure to the virtual reality theme. This article explores the diverse investment avenues available for investors looking to invest in the promising VR sector.

Investing in VR hardware companies creating the core VR devices

One of the most direct ways to invest in virtual reality is to invest in companies manufacturing the core VR devices like headsets, controllers, sensors and other hardware. Some leading hardware players in VR include Sony (PlayStation VR), Facebook (Oculus Rift), HTC (Vive), Samsung (Gear VR) and others. Investors can invest directly in the stocks of these companies. For instance, buying shares of Facebook provides exposure to Oculus Rift. Investing in a VR focused hardware company gives investors exposure to growth from VR hardware sales.

Investing in companies using VR technology for specific industries

Rather than the hardware side, investors can also gain exposure to virtual reality by investing in companies utilizing VR technology to transform different industries. For instance, companies like Microsoft and Google are using VR for enterprise solutions. Simulation training company Strivr uses VR for employee training. Healthcare companies are using VR for medical applications like surgery simulation, therapy and pain management. Companies using VR for applications like online shopping, virtual tours, and industrial design are also benefiting from the technology. By picking stocks of companies deploying VR in innovative ways, investors can tap into the broader VR theme.

Investing in VR focused mutual funds and ETFs

For investors looking for diversified exposure to the VR sector, an option is to invest through mutual funds and ETFs focused on VR and augmented reality. Examples include the Virtus Reaves ARK Virtual Reality and Augmented Reality ETF (VRAR) which provides exposure to stocks like Nvidia, Microsoft, Google and others. The S&P Kensho Extended Reality Index ETF (XRAY) tracks an index of AR/VR companies. The Viridi Metaverse Macro Fund (QRARX) focuses on the broader metaverse which includes VR. Such funds provide a basket approach to investing in VR rather than picking individual stocks.

Investing in gaming companies using VR technology

Gaming is one of the most popular and fast growing uses of VR technology. Major gaming companies like Unity, Epic Games, Activision Blizzard, EA and others are leveraging VR for next-gen games and experiences. The gaming industry is expected to be a major driver of VR adoption. For investors bullish on VR gaming, stocks of leading gaming firms allow gaining exposure to this theme. Investing in chipmakers like Nvidia and AMD that provide the graphics processing power needed for resource intensive VR games is another tactic.

Virtual reality investment provides access to an emerging technology with applications across sectors like gaming, training, healthcare, retail, and more. Investors can gain exposure by investing in VR hardware companies, software firms using VR for enterprise solutions, gaming companies utilizing VR for immersive experiences, and mutual funds focused on the VR/AR theme. As the technology matures, VR is poised to transform how we work, learn and play, providing attractive growth potential for investors.

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