The metaverse is a forward-looking shared and mixed virtual reality, powered by digital technologies. As an interactive and immersive space, the metaverse is expected to affect many aspects of people’s lives, including how they interact, socialize, learn, shop, work and play virtually. It combines aspects of social media, online gaming, and augmented virtual reality and is extensively regarded as a later version of the Internet compared to how we currently know it, which merges our digital lives seamlessly.
To give European investors access to cutting-edge companies across the metaverse, Franklin Templeton launches its new UCITS ETF that selects stocks issued by companies with significant exposure to the metaverse and supporting blockchain technologies. The Franklin Metaverse UCITS ETF is based on the Solactive Global Metaverse Innovation Net Total Return Index composed of global equities issued by companies that have, or are expected to have, significant exposure to the metaverse and supporting blockchain technologies. Companies deemed not to be in line with the principles of the United Nations Global Compact are excluded from the index.
The new ETF was listed on Deutsche Börse Xetra (XETRA) on September 7, and on Borsa Italiana and London Stock Exchange (LSE) from today 9 September. The ETF will provide European investors with cost-effective and UCITS compliant metaverse exposure and the lowest total expense ratios (TER) in Europe at 0.30% (TER is on average 50% lower than to that of any other UCITS ETF on the metaverse).
Great business opportunities for the metaverse
“Many large tech companies have already pivoted on the metaverse for their next major development area in the same way that many did when the Internet was born. There appear to be huge real-world business opportunities for investment in this space considering that by 2030, the e-commerce market could grow between $ 2.0 and $ 2.6 trillion “he commented. Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton.
“The development of blockchain technology is pushing the possibilities of metaverse expansion in compelling and far-reaching ways. We believe that investments in the metaverse and its growing sophistication bode well for the next version of the Internet, which could have a profound impact on societies and global economic growth, ”he added.
A $ 5 trillion market by 2030
“The value of the metaverse is projected to grow to $ 5 trillion by 2030. We are delighted to be one of the first to move into this space and thereby provide European investors with access to a diversified pool of cutting-edge companies. in the key segments of the low-cost metaverse. The new ETF allows investors to diversify their core allocations and related thematic investments into their existing portfolios with unique exposure and participate in the expected secular growth of the underlying megatrend which is digitalization “commented Caroline Baron, Head of ETF Business Development, EMEA, Franklin Templeton.
“The metaverse is the next frontier of the Internet where virtual places will take the place of web pages, creating a new world that lives thanks to digital technologies. It is expected to affect many aspects of daily life, such as social interactions, study and work methods, purchasing methods as well as many other aspects of each of our lives that, to date, we cannot even imagine. Our ETF will allow Italian investors to gain exposure to this trend at a competitive cost and with the transparency and liquidity offered by the listing on the Italian Stock Exchange “he added. Demis Todeschini, Senior ETF Sales Specialist for Italy, Franklin Templeton.