Fidelity® Metaverse ETF (FMET)

Overview

The Fidelityu00ae Metaverse ETF (FMET) aims to invest in companies that are involved in the metaverse, a concept that refers to a persistent, online, 3D universe that combines multiple virtual spaces. The ETF focuses on companies that are involved in building, developing, and operating metaverse technologies and platforms.

Reputation and Reliability

Fidelity Investments is a globally recognized financial services company with a long-standing reputation for offering a wide range of investment products and services.

Management Expertise

Fidelity employs experienced portfolio managers and research analysts with expertise in identifying growth opportunities within emerging technology sectors.

Goal

To provide capital appreciation by investing in companies that are expected to benefit from the development and adoption of the metaverse.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It employs an active management strategy, seeking to identify companies poised to capitalize on the metaverse's growth.

Composition The ETF primarily holds equity securities of companies across various sectors, including technology, communication services, and consumer discretionary, that are involved in building the metaverse. This includes companies involved in virtual reality (VR), augmented reality (AR), gaming, software, hardware, and infrastructure.

Market Share: Specific market share data for niche ETFs like the Fidelityu00ae Metaverse ETF is often not readily available or may be insignificant on a broad market level. Its share is within the specialized metaverse investment space.

Total Net Assets (AUM): 76500000

Key Competitors

• Roundhill Ball Metaverse ETF (METV)

Competitive Landscape

The metaverse ETF landscape is relatively new and fragmented, with a few key players emerging. Fidelityu00ae Metaverse ETF benefits from Fidelity's brand recognition and distribution network. However, it faces competition from ETFs that may have a head start in asset gathering and specific thematic focus. The primary advantage of FMET is its affiliation with a large, established asset manager. A potential disadvantage could be its relative newness in the market compared to some competitors, which might impact its track record and investor familiarity.

Historical Performance: As of December 31, 2023, the Fidelityu00ae Metaverse ETF had a year-to-date return of 30.10%, a 1-year return of 30.10%, and since inception (May 26, 2022) a return of -15.82%.

Benchmark Comparison: The ETF does not track a specific benchmark. Its performance is evaluated against its ability to generate alpha by investing in metaverse-related companies.

Expense Ratio: 0.39

Average Trading Volume

The ETF exhibits moderate average daily trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for the ETF is generally tight, reflecting efficient market-making and reasonable trading costs for investors.

Market Environment Factors

The ETF is sensitive to technological advancements, consumer adoption of VR/AR, gaming industry trends, and overall investor sentiment towards growth and thematic investments. Economic downturns or shifts in technology paradigms could impact its performance.

Growth Trajectory

The growth trajectory of the metaverse ETF is tied to the broader development and commercialization of metaverse technologies. Significant shifts in holdings would likely occur as new companies emerge or existing ones pivot their strategies towards metaverse development.

Competitive Edge

Fidelityu00ae Metaverse ETF's competitive edge stems from its association with Fidelity's robust research capabilities and global distribution network. Its active management approach allows flexibility to adapt to the rapidly evolving metaverse landscape, potentially identifying undervalued companies or emerging trends. The ETF also benefits from Fidelity's brand trust and established investor relationships, which can drive asset inflows and enhance liquidity.

Volatility

The ETF is expected to exhibit higher volatility compared to broad market ETFs due to its concentrated focus on a nascent and rapidly evolving technology sector. Historical performance data shows significant fluctuations.

Market Risk

Specific market risks include technological obsolescence, regulatory changes affecting virtual worlds and digital assets, intense competition among metaverse platforms, and the potential for slower-than-expected consumer adoption of metaverse technologies.

Ideal Investor Profile

The ideal investor is one who has a high-risk tolerance, a long-term investment horizon, and a strong conviction in the future growth potential of the metaverse. Investors should be comfortable with the volatility associated with emerging technology sectors.

Market Risk

This ETF is best suited for long-term investors seeking growth and exposure to a thematic investment opportunity. It is not typically recommended for short-term traders or risk-averse investors.

The Fidelityu00ae Metaverse ETF (FMET) offers investors exposure to the developing metaverse ecosystem through a curated selection of companies. While benefiting from Fidelity's reputation, it operates in a volatile, emerging sector. Its active management strategy aims for capital appreciation, but investors should be aware of significant risks tied to technological adoption and market dynamics. It is best suited for long-term, high-risk-tolerant investors.

Data Sources:

• Fidelity Investments Official Website
• Financial Data Providers (e.g., Morningstar, Bloomberg)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in ETFs involves risks, including the possible loss of principal. The metaverse is an emerging concept, and its future development and adoption are uncertain.