Franklin Templeton Jumps on the Metaverse Train with New Thematic ETF

Franklin Templeton has jumped on the metaverse ETF bandwagon with a new thematic ETF that tracks the Solactive Global Metaverse Innovation Net Total Return Index.
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Quick take:

  • Franklin Templeton has joined the metaverse race with a new thematic ETF.
  • The global investment firm has launched The Franklin Metaverse UCITS ETF.
  • The exchange-traded fund will track the Solactive Global Metaverse Innovation Net Total Return Index.

Franklin Templeton is foraying into the metaverse with a new thematic ETF. The global investment company has launched The Franklin Metaverse UCITS ETF, a metaverse and blockchain-focused exchange-traded fund.

The new ETF will track the Solactive Global Metaverse Innovation Net Total Return Index, which is comprised of companies with significant exposure to the burgeoning metaverse and blockchain industries.

The company described the metaverse as a “forward-looking shared virtual and mixed reality, powered by digital technologies.”

Franklin Templeton is following in the footsteps of other leading investment companies that have launched metaverse-themed ETFs. Proshares, First Trust, Fidelity, Global X and ETC Europe have all announced metaverse ETFs this year.

The burgeoning industry is expected to reach $5 trillion in market value by the year 2030, according to Mckinsey, while Citi predicted a valuation of $13 trillion.

While leading technology companies are willing to pounce on the metaverse by launching products tailored for the growth of the industry, asset investment companies like Franklin Templeton, Proshares, and First Trust think exchange-traded funds could be the key to onboarding mainstream investors into the market.

Exchange-traded funds allow investors to invest in high-risk, high-reward sectors through investment pools composed of companies that target different segments of the market. This allows them to lower the risk of investing in relatively new sectors.

Commenting on her company’s new ETF, Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton said: “Society has already experienced three foundational changes in the way that technology operates and how it’s been delivered since the early 1970s. This exciting fourth wave is now emerging, enabled by blockchain technology.”

Ting also cited how quickly big tech companies have embraced the metaverse. She noted that the expected growth of the e-commerce market to $2-$2.6 trillion by the year 2030 presents a great opportunity for the metaverse to grow.

“Blockchain technology development is propelling metaverse expansion possibilities in compelling and far-reaching ways. We believe that investment in the metaverse and its rising sophistication bode well for the next iteration of the internet, which could profoundly impact societies and global economic growth.”

According to the announcement the new ETF will list on the Deutsche Börse Xetra (XETRA) on 7 September, and the Borsa Italiana and London Stock Exchange (LSE) on 9 September.

It will be registered in 10 countries including the UK, Austria, Denmark, Finland, France, Germany, Ireland, Italy, Spain and Sweden, and will be managed by Dina Ting Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton the company said.

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