The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Metaverse IndexSM... Show more
The Fidelity Metaverse ETF (FMET) is an exchange-traded fund (ETF) — a fund that trades on an exchange like a stock but holds a diversified basket of securities. FMET gives investors a single, convenient way to gain diversified exposure to the "metaverse," a broad concept describing immersive, persistent digital worlds built on technologies such as virtual and augmented reality, advanced graphics, and cloud computing. Because the metaverse spans many industries, FMET's investment strategy is to capture companies across the technology and communications landscape rather than betting on a single winner.
FMET's investment objective is to track the performance of the Fidelity Metaverse Index. The index is designed to reflect a global universe of companies that develop, manufacture, distribute, or sell products and services related to establishing and enabling the metaverse. In practice, this means the fund tilts heavily toward large technology and internet companies that provide the hardware, software, platforms, and digital infrastructure believed to underpin virtual worlds.
The fund is passively managed, meaning portfolio managers aim to mirror the underlying index rather than actively pick stocks to beat the market. FMET is issued by Fidelity (through the Fidelity Covington Trust) and began trading on April 19, 2022. As of recent reporting, the fund holds approximately 66 securities and carries a net expense ratio of 0.39%, which represents the annual fee deducted from fund assets.
FMET's portfolio holdings are concentrated in a small number of large, globally recognized companies. Among its largest positions are household names such as AAPL (Apple), MSFT (Microsoft), META (Meta Platforms), NVDA (NVIDIA), GOOGL (Alphabet), AMD (Advanced Micro Devices), QCOM (Qualcomm), and ADBE (Adobe), along with data-center real estate firms such as Equinix and Digital Realty Trust.
Sector allocation is dominated by information technology (roughly 53–55% of assets) and communication services (roughly 36–39%), with a smaller allocation to real estate (about 7–8%) reflecting the physical data-center infrastructure that supports digital experiences. Geographically, the fund is overwhelmingly U.S.-focused, though it also holds exposure to companies in markets such as China and South Korea.
FMET attracts attention primarily because of its thematic focus on the metaverse and the broader evolution of the internet. For investors who believe immersive digital experiences, spatial computing, and advanced graphics will play a growing role in the economy, the ETF offers diversified access to the theme without requiring stock-by-stock selection. Its sector exposure to fast-moving technology and communication services sectors also positions it as a growth-oriented holding.
Because FMET bundles many of the world's largest technology and internet companies alongside more specialized infrastructure names, it serves as a convenient tool for gaining broad, rules-based exposure to a complex and still-evolving theme. The fund's index-driven rebalancing also helps the portfolio adapt over time as the definition of "metaverse" companies evolves.
Investors should understand several risks before considering FMET. First, the fund is highly concentrated in the technology and communication services sectors, which can be volatile and sensitive to interest rates, regulation, and shifts in consumer and business spending. Its relatively small number of holdings — and the dominance of a few mega-cap names — means individual stock performance can heavily influence the fund.
Second, as a passively managed index fund, FMET does not attempt to outperform the market; it may lag actively managed funds during market shifts. Like all ETFs, it can experience a difference between its market price and its net asset value (NAV), the per-share value of its underlying assets, though this difference is typically small for liquid funds. The fund also carries standard market risk, and its thematic focus means it can underperform broader indexes when investor enthusiasm for the metaverse wanes. Finally, the metaverse as a concept remains relatively new, and its ultimate commercial scale is uncertain.
Tickeron's AI Screener is an AI-powered stock and ETF discovery platform that helps traders and investors identify opportunities using technical indicators, fundamentals, volatility, trends, AI-generated signals, industries, price patterns, and customizable filters. Users can efficiently screen thousands of stocks and ETFs to surface ideas that match their own investment strategies. Explore the AI Screener to discover opportunities aligned with your approach.
The Fidelity Metaverse ETF stands out as a focused, low-cost vehicle for investors seeking diversified exposure to the technologies and platforms associated with the metaverse. By combining leading technology and communication services companies with data-center real estate, FMET offers a broad snapshot of the ecosystem supporting immersive digital experiences. While its thematic and sector concentration introduces meaningful volatility, the fund remains a relevant option for investors who want structured, index-based access to one of the market's most-discussed long-term technology narratives.
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.