What is in Fidelity metaverse ETF?

Have you heard of the relatively new Fidelity Metaverse ETF, widely discussed within the crypto community and relevant forums and sites? Did you know there could be any measurement within the Metaverse of the world? What exactly is it, and why is it measured?

First of all, the Metaverse represents the future of the overall virtual experience, with great potential to change how people interact with each other online. It’s even bigger than online gaming and avatars. The immense popularity of the space was a real inspiration for numerous investment opportunities.

The ETF fund and the Fidelity Total Metaverse Index ETF are here to provide full access to the companies that will contribute to the development of the ever-growing virtual universe. But, what exactly is the Fidelity metaverse ETF, and what is so special about it? 

Let’s get to know the full story of this enchanting metaverse instrument, shall we?

Fidelity metaverse ETF – explained.

Fidelity Investments, the Exchange Commission, and U.S. Securities created a pair of exchange-traded funds whose main goal is to track companies engaged in the metaverse and cryptocurrency industries. 

The Fidelity Metaverse ETF is created to provide exact returns comparable to a proprietary index combined with companies’ stocks generating a minimum of 50% of their total revenue. That total revenue should be from the following categories:

• Wearable technology
• Gaming technology
• Computing hardware and components
• Digital infrastructure

The goal of the Fidelity Crypto Industry and the Digital Payments ETF

Consecutively, the Digital Payments ETF and the FIdelity Crypto Industry’s goal is to replicate the internal index overall performance that’s consisted of companies doing business such as:

• Blockchain technology
• Cryptocurrency mining
• Digital payments processing
• Cryptocurrency support services

What’s crucial to understand is that ETF won’t invest in actual ICOs or other cryptocurrencies. So, for the new ETFs, this firm has created proprietary indexes. The company that will sub-advise new Fidelity ETFs is Geode Capital Management. 

The four new exchange of funds

There are four new exchange-traded funds (ETFs) that focus on three growing investment trends such as:

• The Metaverse
• Cryptocurrencies
• The environmental, social, and governance (ESG) criteria. 

These ETFs have been launched by Fidelity Investments, one of the best brokerage firms in the world at the moment. Here is the list where these funds can be found:

• The Fidelity Crypto Industry
• Digital Payments ETF (FDIG)
• THe FIdelity Metaverse ETF (FMET)
• The Fidelity Sustainable Core Plus Bond ETF (FSBD)
• The Fidelity Sustainable Low Duration Bond ETF (FSLD)

The inception date of these funds is April 19, 2022. Keep in mind that the Digital Payments ETF and the Fidelity Crypto Industry won’t offer direct exposure to cryptocurrencies. Instead, they will invest in companies known to support the extensive digital assets ecosystem.

The project by the Fidelity Investments Inc 

Fidelity Investments Inc is based in the United States and represents one of the world’s largest international investment and asset management platforms. In assets under its administration, it has several trillion U.S. dollars. 

The completely new Fidelity Metaverse ETF will be traded under FIT’s ticker symbol. According to them, investors could easily get broad exposure to the impending metaverse sector, which started in late 2021 when Facebook rebranded to Meta, announcing the creation of the “virtual universe world” for leisure and business.

Along with Fidelity Metaverse ETF holding, it will be a Digital Payments ETF with the ticker DIG and the Fidelity Crypto Industry. 

The Fidelity Metaverse ETF (FME) goal

The Fidelity Metaverse ETF inquires to track the performance of the Fidelity Metaverse Index. It seeks to do so by investing at least 80% of its assets in securities that have been included in the index.

It’s crucial to remember that this index is created to reflect the overall performance of the universe of companies from all over the world that manufacture, develop, distribute or even sell services or products related to enabling and establishing the Metaverse.

What does Fidelity ETF Metaverse seek to provide?

What the investment seeks to provide are investment returns that correspond, prior to expenses and fees, to the overall performance of the Fidelity Metaverse IndexSM. Usually, the fund invests at least 80% of assets in securities that are included in depositary receipts that are securities within the index and the index itself.

As mentioned above, the Fidelity Metaverse Index ETF is created to reflect the performance of global companies related to enabling the Metaverse, while the fund is non-diversified.  

Fidelity Metaverse ETF Chart

When it comes to the Metaverse ETF Fidelity chart, here is a great example of it with key statistics: 

• ETP Type – ETF
• Asset Class -Equity
• Net Assets – AS OF 05/31/2022 $10.7M.
• Net Expense Ratio – 0.39%
• Sponsor – Fidelity Management & Research Company LLC
• Inception Date – 04/19/2022
• Investment Philosophy – Passively Managed
• Benchmark Index – Fidelity Metaverse NR USD
• Legal Structure – Open-Ended Investment Company

Key Statistics

• Price / Earnings (Trailing Twelve Months): 21.77
• Price / Book: 3.07
• Price / Sales: 2.33
• Price / Cash Flow: 13.46
• 30-day SEC Yield: AS OF – 0.10%

Important notice

Remember that the performance data shown represent past performance which is not a guarantee of future results. Present performance could be higher or lower than the performance data quoted. Return and yield could vary, so it’s a gain or loss once you sell your shares. 

Before deciding to invest in any exchange-traded product, it is essential to consider its risks, investment objective, expenses, and charges. For a summary prospectus, or just a prospectus itself containing this information, it’s advisable to contact Fidelity directly and read it carefully.

Why should people invest in Metaverse with Fidelity?

• Early access to potential future disruption – Experts see Metaverse as the next iteration of the Internet. At the same time, Fidelity is known to include capabilities that include and identify in the index companies that drive the construction of that Metaverse. 
• Advanced research capabilities – the ETF Fund leverages Fidelity, and the ETF generally has a trusted approach to index design, including research capabilities and a huge global network.
• Holistic exposure – A global equity strategy offers exposure to numerous aspects of the cryptocurrency industries, digital payments, and the Metaverse.

The growing demand from young investors to invest in the Metaverse.

According to the head of ETF Management at Fidelity, Greg Friedman, there’s a growing demand from young investors to invest in the Metaverse. He stated that the company is focused on growing its broad product lineup and innovative strategies that include value, choice, and vast opportunities for all interested investors.

The company will continue to see demand from these young investors to enter the rapidly growing industries within this digital ecosystem. 

What did Fidelity ETF Metaverse bring to the metaverse investment?

It’s no secret that Fidelity has brought their vast experience and market recognition to the global Metaverse investment arena. It should enable another boost to the completely new and appealing asset class in 2022, helping institutions and retail investors more routes for entering the market properly.  

At the moment, a few E.T.s are available for setting up and trading, allowing investors to invest in numerous metaverse technologies. 

ProShares Metaverse ETF (NYSEARCA: VERS) example

Here is one good example of it: the ProShares Metaverse ETF. Meta Platforms, the parent company of Facebook, has also considered creating and investing in numerous metaverse assets. 

The famous platform eToro, that’s FCA regulated, offers a custom-fit “Metaverse Life” portfolio that includes NFT and Metaverse related to the Metaverse stocks like RBLX and the following 

crypto assets:

• SAND

• MANA

• ENJ

What exactly does the Metaverse term describe?

The term “Metaverse” typically refers to a future state of the Internet characterized by a network of virtual worlds and augmented reality. Both worlds could be experienced in a shared environment and persistently by numerous users worldwide.

The Fidelity Metaverse Index is specially created to reflect the performance of a global universe of companies, as mentioned above. These companies focus mainly on selling, distributing, manufacturing, and developing products related to the Metaverse and its establishment. 

However, generally speaking, there’s actually no universally accepted definition of the “Metaverse” term. Some individuals observe it as an enhanced successor to the present version of the world wide web. They see Metaverse as a new frontier for online interaction that blends digital and physical worlds via computer-generated avatars.

Virtual reality experience

Virtual reality in which the whole life is happening could be compared to the famous series of life simulation video games “The Sims” which was first launched in 2000. In these popular games, players could practically build a complete second life for themselves in a digital world or for the characters of their dreams. 

So, Metaverse could be seen as the collection of virtual weddings, birthdays, and digital experiences connected to our real lives, accessible through P.C.s, game consoles, V.R. headsets, smartphones, etc.

However, according to experts, Metaverse isn’t a game, just an online experience or a piece of hardware. It’s the same as saying that Google, iPhone, or the World of Warcraft game is the entire Internet. 

They are websites, devices, digital worlds, etc. The Internet includes vast protocols, tubes, languages, and technologies, in addition to access devices, communication experiences, and content atop them. Metaverse is seen to be, too.

ETFs – what do they represent?

ETFs are known as the subject to management fees and other expenses that include brokerage commissions. Unlike mutual funds, ETF shares could be sold and bought at market prices that could be either lower or higher than their NAV. They may only be redeemed directly with the fund in creation units by Authorized Participants.