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New
Are Metaverse Pharmacies the Future?
In March 2022, CVS took steps to launch a pharmacy in the metaverse. During the same month, iMining also took steps to launch a pharmaceutical platform in metaverse virtual world Decentraland. What may pharmacies in the metaverse look like? How can investors gain access to companies that may be poised to benefit from the metaverse? What May a Metaverse Pharmacy Look Like?Many retail companies are already setting up stores and showrooms in the metaverse where consumers, via their personal avatars, may view and browse a company’s physical or digital products and purchase physical or digital goods. Payments may be made through cryptocurrency. Pharmacies would be similar. They would allow individuals to receive many of the same services they receive in a physical pharmacy without having to leave their homes. More Than Just Filling PrescriptionsPatients could consult with a meta-pharmacist to either have their prescriptions filled. But they would also be able to do more. As described in the online periodical HealthNews,[1] a visit to a metaverse pharmacy could look like the following: Enter the virtual pharmacy as a digital avatar and receive medical advice from a virtual pharmacist or meta consultantSelect items or drugs from a virtual shelf and hand them to the meta pharmacistPay for the items/medicine with cryptocurrencies, where the transaction would be recorded in a blockchain and stored in your virtual health recordReceive the items at your physical address, possibly via drone Patients could also get advice from meta-pharmacists on how to monitor their prescriptions, how to take the drugs, receive reminders, and track their medicine. Current InitiativesIn March 2022, CVS filed a with the U.S. Patent Trade Office for a trademark to sell virtual goods and non-fungible tokens (NFTs), and to provide healthcare services in the virtual world. The company wants to bring the health services that it offers in its stores to the virtual setting.[2] Also in March, iMining created a new virtual land in Decentraland that includes pharmaceutical services. The service will also allow individuals to fill and renew prescriptions, and to receive online consultations with meta-pharmacists.[3] Some Limitations and ConcernsOf course, not all services performed in physical pharmacies can be performed in virtual space. For example, vaccines could not be administered virtually. Additionally, as with all online endeavors, consumer privacy is always an issue. How may individuals gain exposure to metaverse-related companies? The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may be an attractive vehicle to gain exposure to metaverse-related companies.For a full list of MTVR holdings, please click here. [1] Vanta, Brindusa, Metaverse Pharmacies: What to Expect, HealthNews, 1/31/23[2] CVS Aims to Be First Pharmacy in the Metaverse, PYMNTS, 3/4/22[3] McCutcheon, Brieanna, iMining Moves Into Decentraland, The Market Herald, 3/24/22
1 min read · 114 views
Bong-Geun Choi
May 12, 2023
Avatars: Bridging the Physical and Digital Worlds
One objective of the metaverse is to create immersive 3D digital worlds in which individuals may interact. Truly realistic representations of humans in these digital worlds is needed to facilitate such an immersive experience. Avatars look to fulfill that need. As technology advances, so will metaverse experiences, increasing the demand for avatars with greater functionality. What may the avatar of the future look like? What Is an Avatar?An avatar is a digital or on-screen representation of individuals in the virtual world. It allows users of metaverse technology to depict themselves in digital worlds. Ability to Customize Current technology allows users to customize their avatar, or the way they depict themselves online. Options such as skin color, body shape, and hair styles are available. Additionally, users may change the appearance of their avatars daily or based on situation, much like individuals in the real world would change clothes and looks for different occasions. Thus, avatars allow metaverse users to depict and express themselves digitally. Is Emotion and Facial Expression Next?Metaverse technology is advancing, allowing for more immersive experiences. Digital town squares are inviting more social interactions among metaverse users, gaming is becoming more interactive, and concerts and other entertainment options are being held virtually. Additionally, applications such as virtual workspaces, conferences, and meetings are facilitating more digital interaction. To facilitate more immersive digital experiences, avatar technology will likely evolve to produce more lifelike on-screen representations. Meta, which was formerly known as Facebook but changed its name to match its metaverse aspirations, is working on new avatar technology that allows for more hyper-realistic digital representations. It is using artificial intelligence (AI), sophisticated modeling, and electromyography to render human features and movement accurately in virtual space.[1] Other avatar technology being worked on includes projecting facial expressions and emotional responses onto the avatar. Technology companies are looking at ways to capture real-time facial expressions from a user’s camera and translate it onto the avatar. These changes may allow for richer, more immersive metaverse experiences. The Importance of AvatarsAvatars allow users to manifest themselves visually in a virtual world. Advances in avatar technology may allow for more immersive experiences. One example is in a virtual workspace where more realistic avatars capable of expressing emotion and facial expressions may help to facilitate greater participation and communication, mimicking the real-world work environment more closely. Avatars may also make users feel like they are truly present in the virtual world, facilitate greater interaction, and create fluid and seamless movement within and between digital worlds. Improving avatar technology may facilitate a better metaverse experience. How may individuals gain exposure to metaverse-related companies? The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may be an attractive vehicle to gain exposure to metaverse-related companies.For a full list of MTVR holdings, please click here. [1] Cureton, Demond, The Role of the Avatar in the Metaverse, XR Today, 12/15/22; Greener, Rory, Meta Quest Pro to Leverage Interoperable Immersive Services, XR Today, 10/24/22
1 min read · 127 views
Bong-Geun Choi
May 01, 2023
How Energy Companies Are Embracing the Subscription Model
Subscription pricing models have permeated almost every industry. We often associate subscriptions with consumer products and services. However, non-consumer-related sectors are also embracing the subscription model. One such is the energy sector, particularly mid-stream companies. How are some energy companies utilizing subscription pricing structures? Understanding the Energy BusinessThe energy sector is primarily composed of three segments:Upstream – The upstream segment centers around the extraction of elements such as oil and gas. This segment is also sometimes referred to as Exploration & Production (E&P)Downstream – The downstream segment involves the refining and production of oil and gas.Midstream – The midstream segment primarily refers to the distribution and transportation of oil, gas, and other energy-related products. Companies involved in the energy sector often focus on one of these segments. Some larger companies have operations that span several segments, most often upstream and downstream. For example, large, integrated companies such as Exxon-Mobil extract and refine oil and gas. More often than not, companies in the midstream sector do not have operations that overlap upstream and downstream. Subscription Pricing in MidstreamMidstream energy companies have historically utilized what can be defined as a subscription pricing model. To facilitate their transportation and distribution, many midstream companies construct pipelines to carry oil and gas. Both upstream and downstream companies may purchase a portion of the midstream company’s pipeline capacity to facilitate their need to receive or transport these elements. Buyers of pipeline capacity often enter into multi-year contracts with a pipeline at federally mandated rates. Pipelines offer either firm (guaranteed, but high-priced) or interruptible (lower-priced) service. Shippers receive the right to transport an agreed daily quantity of gas. These long-term contracts are often referred to as subscriptions, with the shippers paying a fixed monthly rate. Shippers and midstream companies may enter into similar arrangements for storage. Why Are There Energy Companies in SUBS?As of 2/15/23, there were three energy companies in the Fount Subscription Economy ETF (SUBS). These were midstream energy companies, primarily pipeline companies. These companies often contract with both upstream and downstream energy companies to transport, store, and perform associated functions. For example, Kinder Morgan specifically states that “storage contracts are subscribed under long-term arrangements …” Others, while not explicitly using the word “subscription,” refer to long-term contracts with fixed payments. The index which underlies the SUBS ETF uses artificial intelligence (AI) to identify sectors and companies within those sectors that offer subscription services. As a result, energy companies are included in the SUBS portfolio. Potential Benefits to Both Sides of the SubscriptionMidstream companies may benefit from a steady, predictable revenue stream generated by the subscription. Companies utilizing midstream capacity may also benefit from predictable expenses and access to the distribution and storage they need. The Fount Subscription Economy ETF (SUBS)The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount SubscriptionEconomy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue. SUBS may present an attractive vehicle for individuals to gain exposure to companies offering subscription-based pricing models. For a full list of SUBS holdings, please click here.Holdings subject to change.
1 min read · 190 views
Bong-Geun Choi
Apr 20, 2023
Popular
A Virtual Real Estate Boom
Real estate sales are booming in the metaverse as investors are spending millions of dollars to acquire virtual tracks of land, according to a Yahoo Finance article [1] . What is behind this boom? How may investors gain exposure to the metaverse? Sales Are BoomingRecently, sales of digital land have totaled in the millions. According to Yahoo Finance, one week of sales in late November 2021 totaled $100 million. What are some factors driving this boom? Location, Location, LocationImitating the physical world, location is crucial in metaverse real estate. The metaverse is made up of multiple virtual worlds. Demand and prices are highest in the most desirable virtual worlds. Sandbox and Decentraland, two popular virtual worlds, saw sales totaling $86 million and $15 million, respectively, during that one week in November. As most virtual real estate transactions are conducted in cryptocurrency, one plot on Fashion Street in Decentraland sold for the equivalent of $2.48 million. In addition, one plot of land in Sandbox sold for a record $4.3 million. [2] ScarcityCreators of virtual worlds only create a finite number of plots. Decentraland has carved out 90,000 parcels measuring 50ft. X 50ft. As these plots are purchased, prices are likely to rise. The Appeal of Digital LandAs the metaverse is built out, more people are joining online communities. As such, they may have a creative desire to express themselves by owning things in these virtual worlds, including land. In several instances, individuals are acquiring virtual “stuff.” This includes, but is not limited to, items used in online games. To store these things, users need digital homes. Online Shopping and EventsRetailers are setting up virtual stores where individuals may purchase goods for both the digital and physical world. Events are held in virtual worlds. Superstars such as Justin Bieber, Ariana Grande, and the Weeknd held concerts in virtual worlds. Companies may use their digital real estate for advertising. Virtual world real estate is being snapped up as companies bet that more people will shop and attend events in digital spaces, thus driving up the value of digital land. Becoming a Digital LandlordA lot of companies are buying large tracts of digital space in hopes of renting it out to retailers or event planners. For example, they may construct a virtual mall and rent out stores within that mall. One firm is constructing an 18-story building with plans to lease it to lawyers and cryptocurrency exchanges. As in the real world, zoning rules dominate the metaverse, dictating what can be built and where. As more individuals join virtual worlds, the potential value of digital real estate may increase. The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may provide an attractive vehicle for individuals to gain exposure to the metaverse.1 Bizouati-Kennedy, Yael, Metaverse Virtual Real Estate is Booming: What’s the Appeal?, Yahoo Finance, 12/3/212 Putzier, Konrad, Metaverse Real Estate Piles Up Record Sales in Sandbox and Other Virtual Realms, Wall Street Journal, 11/30/21
1 min read · 2,379 views
Bong-Geun Choi
Dec 28, 2021
Is the Metaverse the New Frontier for Healthcare?
While it is not entirely built out, elements of the metaverse are being used in both medical training and procedures. As technology advances, the metaverse may offer the potential for significant advances in the field of medicine. Current Metaverse Technologies in UseCurrently, the healthcare industry is utilizing some of the essential components that will ultimately comprise the metaverse, namely, virtual reality (VR), augmented reality (AR), mixed reality (MR), and artificial intelligence. As these technologies are built out, the medical industry will likely make greater use of them. Virtual TrainingAR and VR are being used extensively in medical training. Examples include:The World Health Organization (WHO) is using AR to train COVID responders, including a training course on the proper techniques and sequences to put on and remove personal protective equipment.Medical schools are using AR and VR to train students to perform a wide range of surgical procedures. AR and VR allow for a 360-degree view of ailment, as well as the replication of real-life procedures. AR and VR technologies may be used to create real-life situations, allowing students to perform virtual procedures without the risk of making mistakes on human subjects. It may allow the assemblance of students from far-flung locations to train in one virtual classroom. Real-Life ProceduresAR and VR systems are being used for activities that support diagnoses and pre-surgical preparation and training. For example, using X-rays, MRIs, and CT scans can create an immersive virtual environment that allows a surgical team to devise the procedure before making the first incision and rehearse the surgery beforehand. AR and VR technology is also being used to assist in surgical procedures. Such technology was used in June 2020 in when surgeons at Johns Hopkins used AR in a procedure that inserted six screws in a patient’s spine during a spinal fusion surgery. The surgeons used an AR headset with a see-through eye display that projected images of the patient’s internal anatomy. The surgeon described it as “having a GPS navigator in front of your eyes in a natural way so you don’t have to look at a separate screen to see your patient’s CT scans." Medical Facility DesignAR and VR technology has been used when designing operating rooms. The technology allows visualization of all the people, equipment, and surgical setups for various procedures. This virtual process will allow for optimal design without the need of workers being physically present in the operating room. Moving ForwardMetaverse technology will likely continue to improve. As such, the potential for its use in the medical field will also likely progress. How may individuals gain exposure to the metaverse? The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may hold companies developing technologies that will be used in the medical industry. MTVR may provide an attractive vehicle for individuals to gain exposure to the metaverse.
1 min read · 2,234 views
Bong-Geun Choi
Jan 01, 2022
The State of NFTs in 2022
NFTs became one of the most popular buzzwords in recent years and won headlines around the world. Between 2020 and 2021, the volume of transactions in the NFT market went from 82 million dollars to 17 billion dollars, a growth of more than 21,000%. In almost one year, NFTs have gone from being a tool used by just a few tech experts to an increasingly popular technology among both companies and individual users. But how much of it is sustainable in the long term? How much of this market really makes sense? Are we experiencing a bubble in the NFT market?In 2022, the NFT market remains heated, with the number of transactions, users, and volume growing rapidly. This is not to say that the market does not have its ups and downs. In fact, 2022 has been marked by the drop in the prices of various collections and, at certain weeks, the drop in the number of transactions. How does the market now differ from the market in 2021, and what can we expect in the next few years? We can analyze these questions in three major spheres: collections and utility, technology, and mass adoption. Collections and UtilityStarting with collections and utility, we are still living the hype of collections focused on profile pictures, and this is a trend that is expected to continue for some time. These collections create NFTs that represent an image that can be used as a profile picture in a social network profile.This type of collection has grown so much because it bridges Web 2.0 (social media, cloud, and platforms) and Web 3.0 (blockchain, smart contracts, and tokens). When someone decides to use an NFT as a profile picture on social media, they are sending a message to their audience that they are a person who is aware of new technologies and a person who is part of this new world. An NFT as a profile picture can also help to send a general message about oneself, just like how clothing, followed pages, and liked posts can act as a means of self-expression. Although people believe that the profile picture hype is wearing off, I believe it is still far from over. Despite large volumes, NFTs have yet to reach mass adoption. Social media is a showcase for users to show who they are and NFTs, in the end, are a powerful form of storytelling. NFT profile pictures are a way for users to tell stories within the online environment, and a lot of people still don’t understand its importance. There is another important point: an NFT simply as a profile picture is probably not enough going forward. In 2021 we saw collections making millions in volume with no real use for their owners. Without utility or great storytelling, 99% of collections will go to zero. From now on, collections should convey the utility they will bring to their owners. For this, it is necessary for the makers of the collection to understand the audience they are attracting, so that the uses make sense to those who purchase the NFTs. This utility of NFTs can be exclusive access to content, new collections, online and offline events, and more. TechnologyThe second point, technology, is one of the hottest trends at the moment. Last year brought a very powerful inflection point for the NFT market and it is seldom seen or discussed. The growth in transaction volumes has attracted not only creators and buyers, but also companies developing adjacent technologies, rarity analysis tools, data aggregators, management tools for NFT communities, and others. This movement is just beginning. This year already shows that there are thousands of talented entrepreneurs building tools for this market. Every new innovation brings the potential for other innovations to emerge and that is exactly what we are witnessing right now. In the coming years, we should expect to see more and more tools emerging to solve the problems and challenges of the NFT market. Mass AdoptionFinally, despite high volumes, the NFT market is still far from mass adoption. This is due to both technical and market education issues. There are many barriers to entry in this market right now and these points need to be addressed: better UX and UI, growth of sidechains, cheaper layer 1 transaction fees, layer 2 with more users, etc. In addition, it is necessary to work on raising awareness so that the general public views this market differently. A majority of people still link the NFT market to environmental issues, speculation, money laundering, get-rich-quick schemes and so on. The entry of new players can also help with mass adoption. Some of the biggest business platforms in the world, such as Instagram, YouTube, TikTok, Twitter, and Amazon, have already started to incorporate or have already announced that they are studying the incorporation of NFTs in their products. Despite the discussions about centralization and decentralization, there is no denying that this will contribute greatly to the mass adoption of NFTs.
2 min read · 2,081 views
Tiago Amaral
May 30, 2022
All
Are Smell and Touch the Next Metaverse Frontiers?
The metaverse promises fully immersive, 3D worlds where people may meet, interact, work, and play. Some companies are creating technologies to expand the immersive nature of the metaverse by introducing smell and touch. How are these technologies being integrated into the metaverse experience? Smell in the MetaverseWhile in its early stages, some companies are incorporating smell into the virtual reality (VR) headsets that individuals use to experience the metaverse. For example, OVR Technology showcased a headset that contains a cartridge with eight primary aromas that can be combined to create different scents. The company expects to release this product during 2023.[1] Through its headsets, the company is looking to recreate as accurately as possible the way that humans experience smell in the real world. A cartridge, filled with vials of scents manufactured in the company’s lab, snaps onto the headset and fits over the nose. Users testing the headsets can select fragrances, such as picking a rose. Once you pull the rose away, the smell disappears instead of lingering. The company is also working on not-so-pleasant odors to represent real-life experiences.[2] Taiwanese technology company HTC also introduced a high-end VR headset that looks to create the experience of smell for individuals seeking immersive metaverse experiences. For example, it allows users to manipulate objects in a VR environment and sniff them, much like an individual would bring a peach or glass or wine to their nose.[3] In addition to their entertainment value, such devices may be used to help individuals recover their sense of smell following virus infections that damage the olfactory system, such as COVID-19. Getting the “Feel” of the MetaverseCompanies are also working on haptic devices, or devices that replicate the sense of touch. For example, Microsoft and Meta are investing billions to support technologies including wearables that replicate touch. One such on display at the 2023 Consumer Electronics Show (CES2023) was a product that incorporated yellow gloves and a back vest that relayed sensations through buzzes and vibrations to stimulate the sense of touch.[1] Other are looking to recreate the feel of the ground beneath your feet as you walk or the feeling of holding someone’s hand. Many of these “touch” technologies are in their early stages, so they may not perfectly relay the sense of touch. Other, more advanced technologies involving touch are more expensive and are being used selectively. One such application is the use of touch technology in bomb units. Another is in the field of medicine. Technology Likely to AdvanceAs with most technologies, smell and touch are in their early stages. In time, they are likely to become more advanced and reasonably priced, allowing individuals to enjoy a more immersive metaverse experience. How may individuals gain exposure to metaverse-related companies? The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may be an attractive vehicle to gain exposure to metaverse-related companies.For a full list of MTVR holdings, please click here. [1] Hadero, Haleluya and Yamat, Rio, Metaverse Ventures Bring Small and Taste to Virtual Reality at CES 2023, Fortune, 1/8/23[2] Lefrak, Mikaela, Wat to Smell in Virtual Reality? A Vermont-Based Startup Has the Technology, WBUR, 3/14/22[3] Chadwick, Jonathan, The Real-Life Small-O-Vision? Scientists Develop a Device that Attaches to Your VR Headset and Blasts Aromas Up Your Nose While You Play Video Games, Daily Mail, 10/26/22
1 min read · 214 views
Bong-Geun Choi
Apr 11, 2023
Will Subscriptions Be the Future of Apps?
The app economy is expected to reach $614 billion by 2026 with a user base spending 4.2 hours daily inside apps, according to an article in Forbes.[1] A significant portion of the app economy is mobile subscription apps. What are the benefits of subscription apps? What potential do subscriptions hold in the app economy? Mobile Subscription Apps DefinedMobile app subscriptions may be defined as recurring payments a user initiates in exchange for access to the content, premium features, or services of an app. Many of the top apps by subscribers are in the gaming, entertainment, health and fitness, education, and dating categories. Subscription Apps – A Booming Business ModelSubscription apps have become a large business, as evidenced by the aforementioned predictions cited in the Forbes article. Further highlighting the growth and size of the subscription apps is that there were over 6 million subscription app installations between January 2021 and March 2022. Additionally, annual spending globally during 2021 in the top subscription apps in App Store and Google Play was $13.5 billion and $4.8 billion, respectively. In the U.S., those same figures were $6 billion and $2.5 billion. This U.S. spending was 33% higher than the previous year for App Store and 78% for Google Play.[2] Benefits of the Subscription App ModelThe subscription model may confer many of the same benefits to app developers as it offers other business offerings a subscription-based pricing plan. One of the main potential benefits is a steady, predictable revenue stream. It has also been noted that subscriptions generate higher revenue per user than apps with other business models. The subscription model may promote higher engagement as users encounter new content and features. It also offers the opportunity to promote additional revenue through the promotion of additional content and consumables. Mobile app subscribers receive the benefits of regularly updated content and features. But, perhaps the most significant benefit of the subscription model is freedom from ads, which are often prevalent in free apps. Challenges of the App ModelThe challenges of the app model include the need for regular content and feature updates, getting users to remain after trial periods, personalization, and an efficient team to support the app. Can App Subscriptions Survive a Recession?The Forbes article noted a decrease in app subscriptions during the beginning of 2022. App spending may fall into the unnecessary category as consumers face the threat of a recession and high inflation. Flexibility may be the key for app developers to survive a recession. A hybrid model of offering both on-off purchases and a subscription model may allow developers to attract and retain users. Ad revenue, offering additional purchase opportunities, and experimenting with price different points and corresponding benefits may be other strategies for weathering an economic downturn. In the end, focusing on customer value may allow subscription-based companies, including mobile app developers, to weather economic uncertainty. The Fount Subscription Economy ETF (SUBS)The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount SubscriptionnEconomy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue. SUBS may present an attractive vehicle for individuals to gain exposure to companies offering subscription-based pricing models.For a full list of SUBS holdings, please click here. [1] Polzin, Roland, How Mobile App Subscription Monetization Will Evolve in 2023, Forbes, 1/2/23[2] Tafradzhiyski, Nayden, App Subscriptions, Business of Apps, 11/3/22
1 min read · 224 views
Bong-Geun Choi
Mar 31, 2023
How the Metaverse May Impact Corporations
When we hear discussion about the metaverse, we often think of an interconnected virtual world. We often associate the metaverse with gaming, entertainment, and shopping applications. But, the metaverse may impact the way that corporations operate. A Forbes article noted five ways that the metaverse may impact corporations.[1] Employee Onboarding, Training, and CommunicationSome companies have started to use the metaverse as part of the onboarding process after they are hired. New employees can be given virtual tours of global corporate locations from their respective locations. Corporations may also use the metaverse to provide immersive training, replicating the feeling of work, and facilitate communications through virtual meetings. New Product TestingCompanies may use the metaverse to test new products and designs. For example, apparel companies can create virtual showrooms to allow consumers to view and give their opinions on new designs. Car manufacturers can place individuals in new automobiles to take a virtual test drive or try new features. The ability to create immersive experiences in the metaverse may help companies test new products before producing them. Non-Fungible TokensNon-fungible tokens have become a means for authenticating digital property. Companies will likely become more proficient in the use of NFTs, particularly those that produce digital products such as art, music, video content, and collectibles. Greater InclusionThe metaverse may allow older and infirmed people with limited mobility the ability to experience traveling and other physical activities virtually. It may also create more social experiences through digital worlds that help these individuals avoid social isolation. Many companies are producing such digital experiences with older individuals in mind, creating technology that makes it easier for them to navigate digitally. Democratizing TechnologyThe inclusion of older and infirmed individuals is an example of how the metaverse is democratizing technology. All individuals are able to experience the same event through immersive digital worlds. The old can become young, and the infirmed can become mobile – digitally. Perhaps the CMO moniker at your company will soon stand for Chief Metaverse Officer. How may investors gain exposure to companies involved in metaverse technologies. The Fount Metaverse ETF (MTVR)The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index. The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology. MTVR may be an attractive vehicle to gain exposure to metaverse-related companies. [1] Lukowski, Jorge, Five Ways the Metaverse Is Impacting Corporations, Forbes, 11/10/22
1 min read · 217 views
Bong-Geun Choi
Mar 24, 2023
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.
Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.
Risk Disclosure:
Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume.
The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.
For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities.
Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.
The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.
0 MTVR · SUBS
MTVR · SUBS