Silicon Valley’s Franklin Templeton‘s newly launched exchange-traded fund (ETF) will provide European investors with access to companies that offer exposure to the metaverse and supporting blockchain technologies.
The Franklin Metaverse UCITS (undertakings for the collective investment in transferable securities) ETF tracks the Solactive Global Metaverse Innovation Net Total Return Index, which is comprised of global equity securities issued by companies linked to the metaverse; with exemption to those that fail to align with the UN’s Global Compact Principles.
The ETF, which is to be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager at Franklin Templeton, has been listed today on the Deutsche Börse Xetra (XETRA), followed by a listing on the Borsa Italiana and London Stock Exchange (LSE) on 9 September.
The ETF will be registered in the UK, Austria and other European countries with a total expense ratio of 0.3 per cent.
This metaverse ETF forms the latest addition to the firm’s Franklin LibertyShares platform. With $12billion in assets under management, the platform consolidates a range of active, smart beta and passive ETFs.
“There appear to be tremendous real-world business opportunities for investment in [the metaverse] considering that by 2030, the e-commerce market could grow between $2trillion and $2.6trillion,” comments Ting.
“Blockchain technology development is propelling metaverse expansion possibilities in compelling and far-reaching ways. We believe that investment in the metaverse and its rising sophistication bode well for the next iteration of the internet, which could profoundly impact societies and global economic growth.”
“The metaverse is expected to grow to $5trillion in value by 2030,” explains Caroline Baron, head of ETF business development, EMEA, Franklin Templeton, who added, “The new ETF allows investors to diversify their core holdings and satellite thematic sleeves in their existing portfolios with unique exposure and participate in the expected secular growth of the underlying megatrend that is digitisation.”
“We are delighted to be an early mover in this space and thus provide European investors with access to a diversified pool of cutting-edge companies across the key metaverse segments at a low cost.”