By
Steve Muchoki
April 17th, 2024
These new ETFs from Fidelity will focus on investments in companies working on the Metaverse as well as crypto payments.
On Tuesday, April 12, financial giant Fidelity announced the launch of two new thematic exchange-traded funds (ETFs). The Fidelity Metaverse ETFs (FMET) will focus on the developments in the emerging Metaverse world.
Metaverse and Crypto ETFs
The Fidelity Crypto Industry and Digital Payments ETF (FDIG) will focus on crypto penetration in the digital payments industry. The FDIG ETF doesn’t offer direct exposure to the crypto industry. However, it will invest in a basket of companies that support the broader digital assets ecosystem.
This includes companies dealing with crypto mining, crypto trading, digital payments processing, and blockchain technology. Speaking of the development, Greg Friedman, Fidelity’s Head of ETF Management and Strategy further said:
“Leveraging Fidelity’s decades of investment expertise, we are focused on growing our broad product lineup with innovative strategies that offer choice, value and new opportunities to investors. We continue to see demand, particularly from young investors, for access to the rapidly growing industries in the digital ecosystem, and these two thematic ETFs offer investors exposure in a familiar investment vehicle.”
Similar to the FDIG, the Fidelity Metaverse ETF (FMET) will invest in companies focusing on the developments in the Metaverse space. This includes companies in computing hardware and components, design and engineering software, digital infrastructure, web development and content services, gaming technology, smartphone and also wearable technology.
Fidelity’s Crypto Offerings
Fidelity Investments has always remained interested in getting new crypto products to the market. Fidelity has already filed for its Metaverse ETF earlier this year in January. These two new passively managed ETFs will have a very little expense ratio of just 0.39%.
These are self-indexed ETFs that will use Fidelity’s proprietary indices. Fidelity has always been a leader in thematic investing. It also has thematic funds focused on sustainable investments and ESG. Apart from its Metaverse ETF, and Digital Payments ETF, Fidelity also announced five new fixed-income ETFs. Pam Holding, Co-Head of Equity and Head of Sustainable Investing at Fidelity Investments said:
“Fidelity continues to grow its sustainable investing lineup, with a range of equity, fixed income, and asset allocation strategies, as investors continue to seek opportunities to invest alongside their values and influence positive change in the world”.
The demand for Metaverse ETFs has been on the rise recently. Apart from Fidelity ProShares is also working on launching its Metaverse-tracking ETF. On the other hand, Metaverse ETFs have been getting growing popularity in South Korea.