Fund Aims to Offer Investors New, Innovative Way to Grow Wealth
TORONTO, May 18, 2022 /CNW/ – Fidelity Investments Canada ULC, one of Canada’s leading investment firms, today launched Fidelity Total Metaverse Index ETF (the “ETF”) and Fidelity Total Metaverse Index ETF Fund (the “ETF Fund”).
“At Fidelity, we are proud to offer financial advisors and investors innovative investment strategies that aim to grow their wealth over the long-term, and the metaverse is yet another prime example,” said Kelly Creelman, Senior Vice President, Products and Marketing, Fidelity Investments Canada ULC. “Leveraging Fidelity’s trusted investment expertise, vast global network and research capabilities, Fidelity Total Metaverse Index ETF will expand Fidelity’s thematic investing line up and offer investors access to companies that may revolutionize the digital world.”
The metaverse is a topic that has gained increasing mindshare in recent years. In late 2021, metaverse-focused investment products began to enter the Canadian retail market. Like Web 2.0 or smartphones did over the past two decades, the metaverse may radically evolve our digital experiences, from entertainment and shopping to virtual business meetings. The potential market opportunity is estimated at over $1 trillion in yearly revenues, and many companies are increasingly engaging in this space.
The metaverse is a term used to describe a potential future state of the Internet characterized by a network of augmented reality and virtual worlds that can be experienced persistently and in a shared environment by large numbers of users. The metaverse allows people to engage in various online experiences in a more immersive way, using devices such as virtual reality (VR) and/or augmented reality (AR) headsets.
Given that the metaverse may be the next iteration of virtual experience and therefore has the potential to play a key role in many aspects of our lives, it may represent a significant investment opportunity. Development in areas such as computing power, digital infrastructure, extended reality technologies including VR and AR headsets, and digital payment processing may be critical in paving the way going forward.
The Fidelity Total Metaverse Index ETF and ETF Fund will provide financial advisors and investors exposure to companies that are expected to drive the construction of the experiences, capabilities, and economy of the metaverse, in one convenient product.
The Fidelity Total Metaverse Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Fidelity Canada Total Metaverse Index.
The target composition of Fidelity Canada Total Metaverse Index is approximately:
- 85% in the Metaverse category, and
- 15% in the Digital Payments & Crypto Industry category. Exposure to Digital Payments & Crypto Industry is capped at 15% of the total index.
The ETF and ETF Fund will be sub-advised by Geode Capital Management LLC, a global systematic investment manager with over US $1 trillion in assets under management as at December 31, 2021.
For more information, visit fidelity.ca
About Fidelity Investments Canada ULC
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class resources are committed to doing what is right for investors and their long-term success. Our clients have entrusted us with $190 billion in assets under management (as at May 17, 2022) and they include individuals, financial advisors, pension plans, endowments, foundations and more.
We are proud to provide investors a full range of domestic, international and global equity and income-oriented mutual funds, ETFs, asset allocation strategies, managed portfolios, sustainable investing products, alternative mutual funds and a high net worth program. Fidelity is available through a number of advice-based distribution channels including financial planners, investment dealers, banks and insurance companies.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
INDEX PROVIDER DISCLAIMER
The ETF is indexed to Fidelity Canada Total Metaverse Index. The Index is designed to reflect the performance of stocks of issuers from around the world that are related to the metaverse and/or its digital economy. The ETF is not sponsored, endorsed, sold, or promoted by Fidelity Product Services LLC (“FPS”). FPS makes no representation regarding the advisability of investing in the ETF. The Prospectus contains a more detailed description of the limited relationship FPS has with Fidelity and any related funds/ETFs.
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SOURCE Fidelity Investments Canada ULC
For further information: Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, T: (416) 307-5388, M: (416) 795-7762, E: [email protected]