Fidelity Introduces Metaverse ETF To Its Thematic Portfolio
Fidelity International, one of the leading investment solutions providers, has added five new products to its exchange traded funds (ETF) range. The firm has unveiled a metaverse ETF to continue its virtual ecosystem expansion as part of its themed ETF products.
Fidelity Launches Several ETFs
The investment manager disclosed that five newly launched ETF themes include digital health and the metaverse, cloud computing, clean energy, electric vehicles, and future transportation.
In addition, all the ETFs are designed with long-term structural trends in mind. More importantly, the ETFs are geared towards the company’s sustainability initiative.
Per the firm’s statement, they all have a 50% index component considered to maintain the required sustainable features of the project. Meanwhile, all the newly launched products have a charge of 0.50%.
Furthermore, all the ETF ranges were listed on the London Stock Exchange, the SIX Swiss Exchange, and the Deutsche Börse XETRA. Meanwhile, the platform noted that the listing on Borsa Italiana is scheduled for this month.
The latest development has seen the platform’s ETF range shoot up to 17. This also includes assets from income, equities, fixed income, and thematics.
Moreover, the firm launched its first metaverse ETF in April 2022. And some of its top holders are Tencent, Apple, Alphabet, Nintendo, and Adobe. Each formed over 4% of the total ETFs at Fidelity.
According to the head of ETFs at Fidelity International, Nick King, the thematic investment is a long-term drive that leverages rising trends to invest across countries. It also seeks to capture the drivers of the global economy through exceptional investment decisions.
King added that the majority of the themes come with an enhanced push for sustainability as it seeks to address specific social challenges.
ETF in the Metaverse
The explosion of the “metaverse” phenomenon has brought new digital financial products for users. The Metaverse ETF is a financial service that allows investors to venture into the virtual ecosystem.
Moreover, metaverse ETFs are funds invested in globally listed securities providing products and services in the metaverse. These products are what support the infrastructures and tools of the metaverse.
The Metaverse ETF is a rapidly growing digital financial asset that provides exposure to the virtual landscape.
Metaverse-themed ETFs are now gaining attraction from investors and issuers, which is not surprising. There is a growing demand for the product, and experts have predicted that revenue generated from metaverse activities will likely exceed $1 trillion in the next few years.
Furthermore, metaverse-themed ETFs are in several categories. Some users focus on console gaming, while others are into decentralized finance (DeFi) and blockchain.
As the metaverse market grows, brands also demand entry into the digital space. With prominent brands joining the fray, the metaverse ETF serves as a tool to enable long-term investment drives for organizations. Investors can tap into the expanding metaverse market by diversifying their investments and minimizing risks.
Despite the challenges, a metaverse ETF represents the right path for institutions to venture into the digital realm with minimum risks.
