Fidelity enters the metaverse with a new ETF
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Fidelity Investments is the latest asset manager to enter the metaverse space, announcing its launch of the Fidelity Metaverse ETF (FMET). The fund will join an increasingly crowded field that already includes offerings from the likes of ProShares and others.
Fidelityâs ETF looks to provide access to the growing metaverse sector -- a high-profile tech trend that focuses on a network of virtual worlds that are interrelated through a social connection and facilitated by the use of virtual and augmented reality. The theme has grown in public attention since last year, highlighted by Facebook's name change to Meta Platforms (FB) back in late October.
The exchange traded fund will track the Fidelity Metaverse Index, which is engineered to replicate the performance of a global universe of stocks related to the metaverse in various capacities, from development to manufacturing to distribution.
The metaverse is an emerging market segment that has global ETF issuers scrambling to get out in front of the thematic wave. As such, the Fidelity Metaverse ETF will come to market in a competitive environment, fighting for market share against other funds. Already established funds in the space include Roundhill Ball Metaverse ETF (NYSEARCA:METV), ProShares Metaverse ETF (NYSEARCA:VERS), and the Subversive Metaverse ETF (BATS:PUNK).
Furthermore, the exchange traded fund will trade on the New York Stock Exchange and come forward with a 0.39% expense ratio.
Elsewhere in the sector, Elevate Shares also intends to launch a leveraged metaverse fund called the Elevate Shares 2X Daily METV ETF.