First Trust Advisors has announced that it has launched the First Trust Indxx Metaverse ETF (Nasdaq: ARVR).
The firm writes that the fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an index called the Indxx Metaverse Index (the “index”) which is designed to track the performance of companies that are involved in offering technologies that assist in creating the Metaverse.
First Trust writes that “Metaverse” describes the next generation of the internet, which has the potential to allow creators to build the next chapter of human interaction through immersive experiences in three-dimensional virtual spaces.
“Although the Metaverse is still in its early stages, we believe this ecosystem offers tremendous opportunity for innovation, including many applications that we don’t fully appreciate today,” says Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “As a leading provider of thematic ETFs, we are excited to offer ARVR as a way to gain exposure to stocks that may benefit from the growth and maturity of this dynamic investment theme,” Issakainen says.
Indxx defines the Metaverse as being comprised of the following sub-themes: Internet protocol & contents; platforms; payment; optics & display; and semiconductors, hardware, and 5G. “Technological innovation deployed in the construction of the ongoing initiatives to build a metaverse is laying the foundation for a new digital frontier. In this regard, bold new ventures are leaning into the future to create a more dynamic and exciting era of opportunity in the digital space. These areas in particular are ripe for investor exposure, especially due to their potential application in a variety of industries,” says Rahul Sen Sharma, Managing Partner at Indxx. “We are thrilled to collaborate with the First Trust team throughout the licensing process to bring this methodology to life.”
Chandan Kumar G V, Manager, Index Products at Indxx says: “Each of our products represents a valuable opportunity that is backed by top-notch research and a robust methodology that exemplifies an innovative sector. The Indxx Metaverse Index is a testament to this, and we are excited to bring this index to life through our relationship with First Trust.”