ARVR Profile
The First Trust Indxx Metaverse ETF aims to provide investment results that correspond to the price and yield of the Indxx Global Metaverse Index. Under normal market conditions, the fund invests at least 80% of its net assets, including any borrowings for investment purposes, in common stocks and depositary receipts that comprise the index. The index consists of companies globally recognized for providing services and products supporting the infrastructure and applications of the Metaverse, a virtual reality space where users interact within a computer-generated environment.
The Metaverse represents a significant technological advancement, merging augmented reality (AR), virtual reality (VR), and the internet to create immersive digital experiences. Companies included in the index span a wide range of industries such as gaming, social media, augmented and virtual reality hardware and software, digital transactions, and more. By targeting these sectors, the ETF seeks to capture the growth potential of the Metaverse, which is expected to revolutionize how people interact, work, and play in the digital realm.
The fund's investment strategy includes holding ADRs and GDRs to gain exposure to foreign companies that are at the forefront of Metaverse development. This global approach ensures that the ETF is well-positioned to benefit from innovations and growth opportunities across different regions. The companies in the index are selected based on their significant contributions to Metaverse infrastructure, including cloud computing, 3D graphics, interactive platforms, and digital economies, thus providing a comprehensive investment in this emerging field.
As a non-diversified fund, the First Trust Indxx Metaverse ETF focuses its investments on a specific sector, which may result in higher volatility compared to more diversified funds. However, this concentrated exposure allows investors to directly tap into the evolving Metaverse landscape. Managed by First Trust, known for its expertise in thematic ETFs, this fund offers a strategic investment opportunity for those looking to capitalize on the technological advancements and future potential of the Metaverse, positioning their portfolios at the cutting edge of digital innovation.
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