Features

Offer Your Clients Thematic Exposure with MTVR

The Fount Metaverse ETF (MTVR) looks to invest in companies that develop, manufacture, distribute, or sell products related to metaverse technology.How to Position MTVR in Your Clients’ PortfoliosWith its exposure to potentially disruptive technology, we believe that investors should consider MTVR for a portion of their allocation to thematic funds.What Is a Thematic?While there is no absolute definition, a thematic fund often provides individuals with exposure to a disruptive or high-growth trend and the potential to profit from a significant structural change in society. Investors may choose to invest in thematic portfolios to profit from a theme or express a view or conviction.We believe that MTVR satisfies these criteria for thematic exposure.MTVR: Exposure to Disruptive TechnologyMetaverse technology has the potential to change the way that individuals and businesses interact with each other. It may become the next iteration of the internet, and it is tearing down the walls between the digital and physical worlds.[1]MTVR: Exposure to An Industry with High-Growth PotentialBloomberg Intelligence estimates that the market size of the metaverse may reach $800 billion by 2024. However, when factoring in companies that manufacture the chips and hardware which will power and facilitate the metaverse, and the networking companies that will supply the bandwidth, the size of the metaverse may reach trillions of dollars.[2]MTVR: Because Your Clients Are Demanding Thematic ExposureAccording to a Brown Brothers Harriman study, 85% of global ETF investors plan to increase their exposure to thematic ETFs, and 38% plan to allocate 11-20% to thematics. The study also noted that assets under management in thematic ETFs reached $285 billion by December 2021.[3] Your clients may be looking for, or receptive to, investing in thematic ETFs.MTVR: Because Spotting a Trend Is Easier Than Picking a StockIdentifying a trend tends to be easier than picking the right stock. It is difficult to predict which companies will be successful and which companies will fail. Therefore, it may be better to hold a portfolio of companies involved in metaverse technology, such as the MTVR ETF.Due to the potentially disruptive nature of metaverse technology and expectations of high growth for the industry, advisors may consider allocating a portion of their clients’ thematic allocation to MTVR.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.[1] For more information on metaverse technology, please see the MTVR Investment Case.[2] Investing in the Metaverse, Bloomberg Intelligence, 7/1/21[3] 2022 Global ETF Investor Survey, Brown Brothers Harriman, 3/15/22

READ MORE by Bong-Geun Choi

Offer Your Clients Thematic Exposure with SUBS

The Fount Subscription Economy ETF (SUBS) looks to invest in companies that derive a significant portion of their revenues from offering subscription services.How to Position SUBS in Your Clients’ PortfoliosWith its focus on companies that are responding to changes in the way that individuals consume products and services, we believe that investors should consider SUBS for a portion of their allocation to thematic funds.What Is a Thematic?While there is no absolute definition, a thematic fund often provides individuals with exposure to a disruptive or high-growth trend and the potential to profit from a significant structural change in society. Investors may choose to invest in thematic portfolios to profit from a theme or express a view or conviction.We believe that SUBS satisfies these criteria for thematic exposure.SUBS: Exposure to Societal ChangeIndividuals appear to be changing the way that they consume products and services, moving from an ownership to a usership model. Rather than buying products outright, many individuals are turning to subscription-based models. Businesses are responding by offering more customized payment options, including subscriptions.[1]SUBS: Exposure to An Industry with High-Growth PotentialRevenues from companies offering subscription-based pricing plans have outpaced comparable companies that do not offer such payment options.Additionally, the performance of these companies has outperformed the S&P 500[2] as a whole and related companies not offering subscription plans.[1]SUBS: Because Your Clients Are Demanding Thematic ExposureAccording to a Brown Brothers Harriman study, 85% of global ETF investors plan to increase their exposure to thematic ETFs, and 38% plan to allocate 11-20% to thematics. The study also noted that assets under management in thematic ETFs reached $285 billion by December 2021.[3] Your client may be looking for, or receptive to, investing in thematic ETFs.SUBS: Because Spotting a Trend Is Easier Than Picking a StockIdentifying a trend tends to be easier than picking the right stock. It is difficult to predict which companies will be successful and which companies will fail. Therefore, it may be better to hold a portfolio of companies involved in the subscription economy, such as the SUBS ETF.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 Subscription Economy 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.[1] For more information, please see the SUBS Investment Case[2] S&P 500® Index: (registered trademark of The McGraw-Hill Companies, Inc.) is an unmanaged index of 500 common stocks primarily traded on the New York Stock Exchange, weighted by market capitalization. Index performance includes the reinvestment of dividends and capital gains.[3] 2022 Global ETF Investor Survey, Brown Brothers Harriman, 3/15/22

READ MORE by Bong-Geun Choi

Narrowing the Web3 Gender Gap

I am a woman that does not have a background in tech, and Web3 has changed my life in four months. The gender gap mission has been one of my drivers for entering the Web3 community. To close the unfair gender gap in Web3 all people should be given the same opportunities, have access to education, and be provided with sufficient financial support. There are many women who have used Web3 as an opportunity to showcase their talent beyond cultural limits. Who are some significant female figures in the Web3 space and how are they using this platform to make a difference for future generations?There are several women working in Web3 who are helping close the gender gap. For example, Lavinia D’Osbourne spoke about how cryptocurrency has become a survival opportunity and a means of financial freedom for women in her podcast, Women in Blockchain Talks. She also mentioned that women have progressed faster in crypto than any other industry. What may be some reasons behind this? It may be because, access to cryptocurrency needs no-one’s permission, just the investor’s own will, needs, and curiosity. An article in Coingeek stated that female Web3 professionals are more active career-wise than males and 27% of those professionals have been involved in starting their own Web3 related projects or businesses. [1]The 27% of leading female professionals identified in the Coingeek article are my figures of hope. In the short four months I have been active in Web3, I have felt a sense of belonging and empowerment. To learn more about the role of Web3 in women’s lives, I conducted a poll through my personal LinkedIn asking, “How has Web3 helped you flourish?” I received several responses from prominent figures in the Web3 space. For example, Fernanda Boccard, NFT artist and creator of the Serious and Cool People Collection, said that Web3 gave her the opportunity to do what she loves the most and the ability to believe in her individual power. She stated that her life has changed since she began working with NFTs. Furthermore, Web3 mental health professional Paula Perkusic Birger responded saying that her Web3 experiences led her to believe that this is the space and time for men and women to come together to explore and create better, more inclusive platforms of engagement regardless of industry. She continued to say that the potential is equal for both sexes as Web3 users are welcomed by warm communities that can help people listen and learn, and the boundaries of what is perceived possible are shifted.Web3 is awakening women's talents and bringing awareness to the amount of value women have in the space. However, there are other points to keep in mind to continue closing the gender gap within the Web3 community.A Clear FocusAimée Tañon, founder of the NFT Project The Chi Club, said that we have to mindfully create an understanding of different cultures and generations, and be aware if there is any culture or generation being left behind. Every piece of work should have a clear purpose, vision, and meaningful contribution. This is one of the reasons why I deeply admire one the greatest DAO (decentralized autonomous organization) builders I’ve met, Aléksa Mil. She is aware of the gender gap mission and the importance of having a clear focus to make a bigger impact. Mil is building a DAO, focused mainly on law, to educate more women on how to be part of Web3.Education EffortsCofounder and director of ethics and social policy at Metacampus, Alison Alexander highlighted that giving people job opportunities is not enough to increase the presence of women in Web3. There needs to be a bigger effort put on educating users of the basics. Ideally, individuals needed to be taught how to deal with the emotions of moving into something new, transitioning into a new career, and understanding how to build quality new connections. One example of a project providing this type of education is the online community and learning platform, Digital Women, founded by Lucy Hall. I follow this project as it is focused on educating women to understand how to build and place their digital skills into the needs of blockchain and Web3 digital transformation. There is also a wide community of users that support each other and they also offer a job-placement support.EmpathyWeb3 Marketing leader, Elena Ruiz Arenas, once said in a women in tech conference, “Thanks to its diversity, Web3 is a talent catalyst, bringing together people working in distributed teams with international profiles. In an industry where everything is new, everyone faces the same challenges and is willing to help each other. This empathy feeling of Web3, based on shared challenges and purposes, is flourishing, especially in women's communities. We are all increasingly aware of the need to empower women and our valued role in innovative environments.”Arenas words claim how diversity brings empathy through learning, and that empathy brings innovation into the environment.There are highly empathic initiatives that exist to support women in areas such as education, job placement, and fundraising, and they welcome women in any career-stage. One example is The Bigger Pie, led by Bridget Greenwood. The Bigger Pie focuses on diversity and inclusion in blockchain. It supports women through networking, education, and daily mentoring. Additionally, there are male leaders that are voicing and creating action towards equality in Web3. For example, founder of Metahub Jamie Bykov-Brett, advises people on how to use Web3 to bring influential social changes such as diversity and fairness to women.There is still a big gender gap on a global level. However, with a unified focus on gender equality, better education efforts, and empathy significant changes can be made. And before entering the Web3 space, one should ask him or herself:How am I raising awareness for equality?How is my project a source of education for the female members?What other actions can I take to support women equity and close the gender gap?1) Kaaru, Steve. “Women are leading in Web3, majority believe it will define the Internet: report,” Coingeek, August, 16, 2022.

READ MORE by Daniela C. Merlano

Posts

28-Sep-2022

MTVR Metaverse Report (September 2-23)

Industry updates from the Fount Metaverse ETF (MTVR) for September 2 - 23.Clickhere to access the full list of holdings.Naver Launches MetapodNaver Cloud, a cloud computing service owned by Naver Corp., launched a metaverse service called Metapod. Metapod will provide end-to-end management to customers looking to construct social networks of 3D virtual worlds. Users can design a virtual world to host online events such as conferences, seminars, job fairs, interviews, etc. using methods like extended reality (XR) and digital twin technology. Naver Cloud's sales executive director Tae-kun Lim said, “As non-contact emerges as a new paradigm and rapidly increases business demand using metaverse across the industry, the launch of cloud services to build metaverse is not an option but a necessity.” [1]NaverMeta Partners with Qualcomm to Make Virtual Reality ChipsMeta Platforms and Qualcomm have signed a multi-year agreement to develop custom chipsets for virtual reality products powered by Qualcomm’s Snapdragon extended reality platforms. Mark Zuckerberg announced that the customized virtual reality chips will be for the future roadmap of Meta’s Quest products. [2]Meta/QualcommBandai Namco, Sega, and Square Enix Join Oasys BlockchainJapanese gaming giants Bandai Namco, Sega, and Square Enix have joined the Oasys blockchain in hopes for mainstream blockchain game adoption. At the recent 2022 Tokyo Games Show, director Ryo Matubara from Oasys suggested that the companies are looking to develop brand new blockchain games rather than integrating blockchain technology into their existing franchises. Bandi Namco developed titles like Tekken, Sega is most known for its Sonic the Hedgehog series, and Square Enix created the beloved Final Fantasy games. [3]Square Enix / OasysNaver Launches K-Pop NFT PlatformNaver and messaging app Line has launched a new NFT (non-fungible token) platform called NOW.Drops. The platform allows K-pop fans to mint NFTs of their favorite artists by cropping out of the content on NOW, Naver’s live audio and video streaming service. NOW.Drops is linked to LINE’s e-wallet DOSI, which can be used by logging in via social media and making payments. [4]Now.DropsLearn how to invest in your future experiences with Fount ETFsThe Fount Metaverse ETF (MTVR)The Fount Metaverse ETF (MTVR) 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 for investors looking to invest in the metaverse.For a full list of MTVR holdings, please clickhere.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 Subscription Economy 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 invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.For a list of SUBS holdings, please clickhere.1) Chang-won, Lim. “Naver Cloud unveils metaverse construction and operation solution called 'Metapod'” Nate, September 2, 2022.2) Kharpal, Arjun. “Meta and Qualcomm strike deal to make custom virtual reality chips for metaverse applications,” CNBC, September 2, 2022.3) Quarmby, Brian. “Bandai Namco, SEGA among video game giants eyeing blockchain gaming,” Cointelegraph, September 19, 2022.4) Lavania, Ritu. “South Korea’s Naver & LINE Launch NFT Platform for K-Pop Fans,” The Crypto Times, September 22, 2022.

READ MORE by Inhee Lee
21-Sep-2022

MTVR in Three Bullets

The Fount Metaverse ETF (MTVR) looks to provide exposure to companies that develop, distribute, or sell products related to metaverse technology. The investment case for MTVR can be encapsulated in three bullets which advisors may find helpful in presenting the fund to their clients:Metaverse technology is disruptive and may change how humans and organizations interact and conduct businessThe metaverse industry may experience strong, rapid growthMTVR aims to provide exposure to companies in the metaverse industrySupporting MaterialFor advisors looking to expand on these three bullets, the following information may prove helpful:Metaverse technology is disruptive and may change how humans and organizations interact and conduct business[1]Augmented reality (AR), one of the components of metaverse technology, may alter the way that individuals interact with the physical world around themVirtual World technology, also known as virtual reality (VR), creates digital worlds where individuals may socialize, shop, and conduct business, among many other applicationsConcerts, performances, digital travel, and gaming are among the many applications of AR/VR technologyMirror world technology allows for the digital representation of the real worldThe metaverse industry may experience strong, rapid growthBloomberg Intelligence estimates that the market size of the metaverse may reach $800 billion by 2024[2]When factoring in companies involved in the manufacturing of chips and hardware, networking devices, and other ancillary services, Bloomberg estimates that the size of the metaverse economy may reach trillions of dollarsMTVR aims to provide exposure to companies in the metaverse industryThe 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 focuses on four major components of metaverse technology:[3]Augmented RealityLife LogMirror WorldVirtual WorldMore information about the MTVR ETF can be found in the MTVR Investment Case and on the MTVR fund page.[1] For more information on the uses of metaverse technology, please see the MTVR Investment Case[2] Investing in the Metaverse, Bloomberg Intelligence, 7/1/21[3] For further information on these components, please see the MTVR Investment Case

READ MORE by Bong-Geun Choi
21-Sep-2022

SUBS In Three Bullets

The Fount Subscription Economy ETF (SUBS) looks to provide exposure to companies engaged in the business of providing subscription services. The investment case for SUBS can be encapsulated in three bullets which advisors may find helpful in presenting the fund to their clients:Consumers may be transitioning from an ownership to a usership modelCompanies in the subscription economy may experience stronger growth than traditional companiesSUBS looks to provide exposure to companies in the subscription economySupporting MaterialFor advisors looking to expand on these three bullets, the following information may prove helpful:Consumers may be transitioning from an ownership to a usership modelMore consumers are opting for subscription services rather than outright ownership78% of adults worldwide utilized subscription services [1]75% of adults worldwide believe that they will subscribe to more services and own less stuff[1]Companies are responding by offering, or planning to offer, more subscription pricing options70% of businesses believe that subscription services hold the key to future commercial growth [2]By 2023, Gartner Group predicts that 75% of organizations selling directly to consumers will offer subscription services [3]Companies in the subscription economy may experience stronger growth than traditional companiesCompanies that employ subscription-based models, as measured by the Subscription Economy Index,[4] have outperformed traditional business modelsCompanies in the Subscription Economy Index (SEI) experienced revenue growth of 16.2% during 2021 versus 12% for companies in the S&P 500[5]Over the past ten years ending 12/31/21, companies in the SEI experienced a compound annual growth rate (CAGR) of 17.5% versus 3.8% for companies in the S&P 5005UnivDatos estimates that the subscription market will reach $478 billion by 2025, experiencing a 68% compound annual growth rate (CAGR) over the 2019 through 2025 period[6]SUBS looks to provide exposure to companies in the subscription economyThe 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 Subscription Economy 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.More information about the SUBS ETF can be found in the SUBS Investment Case and on the SUBS fund page.[1] The End of Ownership, Subscribed Institute, 2020; More statistics can be found in the SUBS Investment Case[2] How to Make Money From Membership Economics, Global Banking & Finance, 4/23/19[3] Top 10 Trends in Digital Commerce, Gartner Group, 10/3/19[4] The Subscription Economy Index (SEI) is designed to measure the growth in the volume of business for subscription-based products and services. The index is constructed by Zuora, a subscription consulting company and is not associated with the SUBS ETF nor is it the index that the fund aims to replicate[5] The Subscription Economy Index: February 2022, Zuora, February 2022[6] Global Subscription E-Commerce Market, UnivDatos, 8/20/20

READ MORE by Bong-Geun Choi
08-Sep-2022

MTVR Metaverse Report (August 26-September 2)

Industry updates from the Fount Metaverse ETF (MTVR).Clickhere to access the full list of holdings.Meta to Release a New VR Headset in OctoberMeta Platform’s CEO Mark Zuckerberg confirmed that Meta will release its next virtual reality (VR) headset in October, most likely at Meta’s annual Connect event. According to Zuckerberg, the new headset will use eye and facial tracking technology to help avatars translate the user’s facial expression in real time. He also said that this headset will include some mixed reality features. [1]MetaApple Files ‘Reality’ TrademarksApple has filed three trademarks for “Reality One,” “Reality Pro,” and “Reality Processor.” This recent filing suggests that Apple might incorporate a “Reality” theme for its long-rumored mixed reality headset. All three filings mention virtual and augmented reality headsets, googles, glasses, and smart glasses. Rumors say the “Reality One” trademark refers to the headset, “Reality Pro” for a spec-boosted version, and “Reality Processor” for the headset’s processing unit. [2]Render via designer Ian ZelboPost Your NFTs on Facebook and InstagramMeta now allows users to post their NFTs on both Facebook and Instagram. Users can connect their wallets to post digital collectibles minted on Ethereum, Polygon, and Flow. Meta hopes to reach a wider audience by letting users show off their digital collectibles. Eventually, the company wants to support all major blockchains and wallets. [3]MetaNaver Z to Power Metaverse Communities in ThailandNAVER Z, affiliate of NAVER Corp., has signed a memorandum of understanding with True, Thailand’s biggest communications company. They hope to build a global metaverse hub for creators with this partnership. Birathon Kasemsri, Chief Content and Media Officer at TRUE said, “Through this partnership, we intend to lead Thailand into the metaverse by integrating TRUE's vast digital ecosystem with NAVER Z's metaverse expertise. Using ZEPETO as a platform, we will provide a special future-oriented, online-to-offline (O2O) experience that fits the lifestyle of Thai users and promotes Thailand's soft power in metaverse content creation for ZEPETO's global audience.” There are currently millions of ZEPETO users including over 500,000 Thai content creators. [4]NaverLearn how to invest in your future experiences with Fount ETFsThe Fount Metaverse ETF (MTVR)The Fount Metaverse ETF (MTVR) 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 for investors looking to invest in the metaverse.For a full list of MTVR holdings, please clickhere.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 Subscription Economy 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 invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.For a list of SUBS holdings, please clickhere.1) Mehta, Ivan. “Zuckerberg says Meta’s next VR headset will launch in October and will focus on ‘social presence,’” TechCrunch, August 26, 2022.2) Roth, Emma. “Trademark filings point to ‘Reality’ branding for Apple’s mixed reality headset,” The Verge, August 28, 2022.3) Mehta, Ivan. “Meta now lets you post your NFTs on both Facebook and Instagram,’” TechCrunch, August 30, 2022.4) “NAVER Z Joins Hands with TRUE to Power Metaverse Ecosystem in Thailand’” Yahoo Finance, September 1, 2022.

READ MORE by Inhee Lee
08-Sep-2022

SUBS Subscription Economy Report (August 22-September 2)

Industry updates from the Subscription Economy ETF (SUBS).Clickhere to access the full list of holdings.T-Mobile Subscribers to be Able to Connect to Starlink SatellitesT-Mobile will partner with SpaceX satellites to expand the carrier’s coverage to the remote parts of the United States. Access to the constellation of SpaceX’s Starlink satellites will provide service to T-Mobile subscribers that are in areas with no cell towers. T-Mobile chief executive Mike Sievert said, “This partnership is the end of mobile dead zones. This is important for safety, it is important for contact with the people we love, and it is important for people in rural areas.” The carrier will begin using Starlink’s satellites by the end of next year, and the service is expected to be included in existing plans at no extra cost. [1]T-Mobile Space XVMware Sees Growth in SaaSCloud computing company VMware has posted growth in overall revenue including in SaaS (software as a service) and subscription sales. A press release issued by VMware stated that the overall revenue for the second quarter was $3.34 billion which is up 6 percent year over year. Additionally, subscription and SaaS revenue for the quarter was up 22 percent year over year, reaching $943 million. In the last 12 months VMware has grown subscription and SaaS revenue by $176 million. [2]VMwareT-Mobile Magenta Max Subscribers to Get Free Apple TV+Customers of T-Mobile’s Magenta Max plan will now be able to get Apple TV+ for free. T-Mobile also offers the basic, standard tier of Netflix for all T-Mobile customers. Aside from Apple TV+ and Netflix, T-Mobile also offers its subscribers a free year of Paramount Plus, plus monthly discounts on YouTube TV and Philo TV. As most carriers offer 5G coverage or similar mobile data speeds, streaming bundles may help increase customers. [3]T-MobileLearn how to invest in your future experiences with Fount ETFsThe Fount Metaverse ETF (MTVR)The Fount Metaverse ETF (MTVR) 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 for investors looking to invest in the metaverse.For a full list of MTVR holdings, please clickhere.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 Subscription Economy 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 invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.For a list of SUBS holdings, please clickhere.1) Lopes, Marina. “T-Mobile partners with SpaceX in effort to end cellphone dead zones” The Washington Post, August 25, 20222) Johnson, O’Ryan. “VMware Growth In SaaS, Subscription Sales Lead Revenue Surge,” The Channel Co., August 26, 20223) Welch, Chris. “T-Mobile Magenta Max subscribers will now get free Apple TV Plus,” The Verge., August 29, 2022

READ MORE by Inhee Lee
06-Sep-2022

Building the Metaverse Through Gaming

Global consumer brands, especially luxury brands, are clamoring to stake their claims in the metaverse. But what exactly is the metaverse, why does it matter, how are consumers engaging with it, and how do brands leverage it to create deeper customer relationships?Web3 is the latest iteration of the World Wide Web, which integrates decentralization, blockchain technologies, and token-based economics. The metaverseis a crucial part of this evolution — a digital space that mirrors aspects of the physical world in which people use virtual and augmented reality, social tools, and cryptocurrency to interact. Brian X. Chen, in his NY Times article,What’s All the Hype about the Metaverse?[1] referred to it as “the convergence of two ideas that have been around for many years: virtual reality and a digital second life.”It’s important to understand that the metaverse hasn’t yet fully come into being. In a thought-provoking article,The Metaverse Doesn’t Exist! You’re Talking About Gaming [2], James Whatley suggeststhat the various blockchain-enabled digital platforms that bring people together are primarily games — Fortnite, Roblox, Minecraft. I see these properties, and the spaces Meta, Google, Microsoft, and others are creating, as independent islands that are miniverses. Over time, certain ‘verses will reign supreme, capturing the zeitgeist while others fold. This anticipated shift is similar to how Web2 social properties proliferated and then consolidated.The tech behemoths (Meta, Microsoft, Google, Apple) and up-and-comers (Decentraland, The Sandbox, Hyperverse, Roblox, Axie Infinity, etc.) are competing for dominance with their respective takes on the metaverse and thus vying for lifelong consumers. And luxury fashion brands are enthusiastically jumping into Web3by partnering with established games that have created their own ‘verses. As a result, we have collaborations between Gucci and Roblox, Burberry and Roblox, Balenciaga and Fortnite, Prada and Meta, Dolce & Gabbana and UNXD, to name a few.A critical and transformative difference between Web3 and Web2 is driving these collaborations. In the Web2 model, the platforms control the content, which limits and doesn’t reward creators. The Web3 model, with its foundation of blockchain and token economics, is inherently favorable to decentralization, creating the possibility ofa circular economy where both content creators and content consumers are meaningfully rewarded for their efforts [3]. This means consumers can create alongside their favorite brands, and brands in turn gain more loyal and engaged customers.Creator-empowered Web3 communities already exist in gaming where independent ‘verses have collectives of people interacting with each other in a ‘second life’ and transacting in crypto-currency, significantly blurring the line between creators and players (consumers). This blending of player/creator is the catalyst for an exciting shift from play-to-earn to play-to-own to, ultimately, create-to-earn. With play-to-earn, the game feels like a job within the game, and its creators as the ‘boss’. With play-to-own, there’s a greater emphasis on the partnership between the game-maker and the player, with the player owning something and then having the option to sell. Play-to-own emphasizes the ‘fun’ aspect of gaming (it is a game, after all) by removing the ‘earn’ mentality, asexplained by Crypto Raiders co-founder Nick Kreupner during a Q&A with Cointelegraph[4]. However, this model still implies owning something created by the game-maker. The next evolution is create-to-earn, where players are intrinsically involved in creating a part of the game’s content, minting assets, and owning them definitively on the blockchain. Players can then monetize their creations, if and when they choose. Here we have, I feel, a much closer partnership and equality between game-maker and gamers.Decentralization and creator empowerment is the future of the internet. It’s encouraging to see many brands, especially luxury brands, diving into the space and helping drive innovation, Web3 and the metaverseinto the future.Learn how to invest in your future experiences with Fount ETFsThe Fount Metaverse ETF (MTVR)The Fount Metaverse ETF (MTVR) 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 for investors looking to invest in the metaverse.For a full list of MTVR holdings, please clickhere.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 Subscription Economy 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 invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.For a list of SUBS holdings, please clickhere.1 Chen, Brian X. “What’s All the Hype about the Metaverse?,” New York Times, Jan. 18, 20222 Whatley, James. “The metaverse doesn’t exist! You’re talking about gaming,” The Drum, May 17, 2022.3 Ghosh, Sumit. “Web3 holds the promise of decentralized, community-powered social networks,” Venture Beat, Feb. 26, 2022.4 Exposito, Alyssa. “Crypto Raiders explains how blockchain gaming attracts new users to Web3,” Cointelegraph, Apr. 11, 2022.

READ MORE by Amber Bezahler

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.