Fidelity Launches Metaverse ETF

MetaversePlanet September 11, 2022

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Fidelity International, a provider of investment solutions, has announced the expansion of its exchange-traded funds (ETF) portfolio with the addition of five new products.

Among these, the firm has introduced a Metaverse ETF, aimed at furthering the growth of virtual ecosystems as a component of its ETF offerings.

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Metaverse ETF

The growing recognition of the term “Metaverse” has ushered in new digital financial products for users. Exchange-Traded Funds (ETFs) are financial services enabling investors to venture into the virtual ecosystem.

Metaverse ETFs specifically invest in globally listed securities that offer products related to the Metaverse. These products support the infrastructure and tools of the Metaverse. The Metaverse ETF is an emerging digital financial asset providing access to virtual environments.

Metaverse-themed ETFs are gaining traction among both investors and issuers. There’s an escalating demand for these products, and experts foresee that revenues from Metaverse operations could surpass $1 trillion in the next few years.

Moreover, Metaverse-themed ETFs vary in focus. Some cater to console gaming enthusiasts, while others center on decentralized finance (DeFi) and Blockchain. As the Metaverse market expands, more brands are making their foray into the digital realm.

Additionally, with the involvement of leading brands, Metaverse ETFs are becoming a tool for organizations to make long-term investment strategies. Investors are looking to minimize risks by diversifying their portfolios, yet they stand to benefit from the burgeoning Metaverse market.

Fidelity Metaverse ETF

The investment manager has disclosed that the five new ETF themes recently launched include digital health, the Metaverse, cloud computing, clean energy, and the future of electric vehicles and transportation. All these ETFs are strategically designed with a focus on long-term structural trends.

Notably, these ETFs are integral to the company’s sustainability initiative. As per the firm’s announcement, the ETFs incorporate a 50 percent index component, which is essential for their sustainable characteristics. A fee of 0.50 percent will be applied to all newly introduced products. Furthermore, these ETFs are listed on the London Stock Exchange, SIX Swiss Exchange, and Deutsche Börse XETRA, with plans for a listing on Borsa Italiana scheduled for later this month.

Fidelity launched its inaugural Metaverse ETF in April 2022. Prominent stakeholders in this ETF include major companies like Tencent, Apple, Alphabet, Nintendo, and Adobe, each constituting over 4 percent of the total ETFs at Fidelity.

Nick King, the Head of ETFs at Fidelity International, emphasizes that investing is a long-term strategy that capitalizes on emerging trends and spans multiple countries. The aim is to harness the key drivers of the global economy through astute investment choices.