Last Updated on May 2, 2022
Quick take:
- Fidelity has announced the launch of a new metaverse ETF.
- It will provide investors access to the growing metaverse sector.
- The ETF will track the Fidelity Metaverse Index.
American multinational financial services company Fidelity Investments has announced its launch of the Fidelity Metaverse ETF (FMET).
The exchange-traded fund will provide investors access to the growing metaverse sector, which has recently seen ProShares and ETC Group also launch metaverse ETFs.
The metaverse is a network of virtual worlds that facilitates different experiences such as game modes, shopping malls, virtual events, e-learning, social interactions and more through the use of virtual and augmented reality. With its own digital economy, the metaverse also allows users to buy, sell and trade virtual goods.
Since Facebook’s rebrand to Meta last October, interest in the metaverse has surged, with banking giants such as Goldman Sachs, Morgan Stanley and Citigroup predicting that it could be a multitrillion-dollar industry with several industries to benefit alongside gaming.
Fidelity’s new ETF will track the Fidelity Metaverse Index, which replicates the performance of global stocks related to the metaverse in capacities ranging from development to manufacturing to distribution. The metaverse ETF will debut on the New York Stock Exchange with a 0.39% expense ratio.
Global ETF issuers have been rushing to grab their share of the emerging metaverse market by issuing metaverse ETFs.
In doing the same, Fidelity will compete against other established funds such as Roundhill Ball Metaverse ETF (NYSEARCA:METV), ProShares Metaverse ETF (NYSEARCA:VERS), and the Subversive Metaverse ETF (BATS:PUNK) in an increasingly crowded field.
According to Seeking Alpha, Elevate Shares also intends to launch a leveraged metaverse fund called the Elevate Shares 2X Daily METV ETF, which corresponds with the Roundhill Ball Metaverse ETF.
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