Posts
MTVR Metaverse Report (July 22-July 29)
Industry updates from the Fount Metaverse ETF (MTVR).Clickhere to access the full list of holdings.Xiaomi’s Metaverse Related PatentsTech giant Xiaomi’s recent patents show the company’s attempts to further progress into the metaverse. They received authorization for a magnetic AR (augmented reality) glasses patent. The glasses include a frame, the first temple, and the second temple, 97 micro sensors, and communication modules. This news comes after Xiaomi experimented with Smart Glasses in September 2021. [1]Xiamoi has also introduced a patent, titled Virtual Character Processing Method, Device, and Storage Medium, that utilizes blockchain technology to create virtual characters for the metaverse. The patent elaborated that Xiaomi’s virtual characters will be generated using different gene sequences meaning that each one of the characters will be unique and unpredictable. [2]XiaomiTommy Hilfiger Opens Virtual Store on RobloxTommy Hilfiger has opened a shop called Tommy Play in Roblox’s metaverse. Tommy Shop is a virtual and immersive experience to show off the brand’s newest designs. It also hasinteractive events like parkour, bike courses, and freeze tag to get people playing while they learn more about Tommy Hilfiger’s offerings. [3]Tommy Hilfiger will also live stream their New York Fashion Week show on Roblox, where avatars wearing the collection will strut down a catwalk in a virtual New York City. [4] RobloxKakao to Expand NFTsKakao’s blockchain subsidiary, Ground X, has formed an alliance to popularize and expand the use cases in the NFT (non-fungible token) ecosystem. The alliance, called GRID, consists of around 50 companies including Shinhan’s banking and credit card subsidiaries, Amore Pacific, Lotte Department Store, and Kakao Games. Ground X will support companies in GRID by providing digital infrastructure services. [5]Kakao/Ground XHYBE’s NFT Venture to Launch SoonDunamu, the operator of South Korea’s Upbit crypto exchange, and HYBE, the entertainment agency managing K-pop groups BTS, TXT, and Seventeen, confirmed that that they will be launching their NFT and Web3 business later this year. Although specific details have yet to be released, Dunamu said their NFT business will be based on the intellectual property of K-pop artists. [6]HYBELearn 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) “Xiaomi Gains Magnetic AR Glasses Patent, Advancing Metaverse Layout,” Pandaily, July 22, 2022.2) Goschenko, Sergio. “Xiaomi Files Patent to Create Its Own Blockchain-Powered Virtual Characters,” Bitcoin.com, July 22, 20223) Meers, Whitney. “Roblox fashion expands even further with in-game Tommy Hilfiger shop,” PC Games, July 22, 20224) Waldman, Sophie. “Tommy Hilfiger to Host NYFW Show Inside Roblox's Metaverse,” Hypebeast, July 28, 20225) Park, Danny. “Kakao’s Ground X forms business alliance to expand NFT use cases, services,” Yahoo, July 22, 20226) Park, Danny “Dunamu’s NFT venture with BTS’s HYBE to launch services later this year,” Yahoo, July 25, 2022.
The Majority of Consumer Brands May Offer Subscriptions by 2023
The majority of direct-to-consumer (DTC) brands may offer subscription plans by 2023, according to a report released by e-commerce market intelligence firm PipeCandy.[1] What is driving this trend? How may consumers gain exposure to companies offering subscription plans?Factors Driving the Growth of SubscriptionsThe PipeCandy report estimates that nearly 75% of DTC companies will offer subscription pricing plans by 2023. They attribute this growth to two main factors:Ease of Entry –DTC brands can easily set up a DTC website on platforms such as Shopify and utilize third-party apps to enable recurring purchases.Favorable Demographics– Millennials and Gen-Zers, representing 47% of the U.S. population, have entered the workforce in the last decade.They are more tech-savvy than earlier generations and more likely to utilize e-commerce platforms.Additionally, they are avid social media users and engage in online forums to discuss their interests.Companies have seized that data to create personalized, subscription-based experiences.Rapid Growth of Subscription-Based Pricing ModelsIn the ten years spanning 2012 through 2021, the Subscription Economy Index[2] advanced 437% versus the 132% and 130% returns of the S&P Retail and S&P 500 indexes.Size of the Global DTC MarketThe report also indicated that the global DTC subscription market was worth $58.3 billion in 2021, having grown at a compound annual growth rate (CAGR)[3] of 68%, over the past decade. The U.S. subscription market, worth about $27 billion, is the largest segment of the global market.According to the report, there are over 27,000 DTC companies in the U.S. Additionally, there are over 225 million subscriptions and 61 million subscribers in the U.S., making for an average of 3.7 subscriptions per subscriber.Pandemic EffectThe COVID-19 pandemic helped to accelerate the growth of subscriptions. In 2020, the gross merchandise value (GMV)[4] of the monthly subscription box segment spiked by 80%, with nearly 25% of U.S. consumers subscribing to this service.While that number is declining as the economy normalizes, it is still estimated to register a 20%-30% year-over-year gain in 2022 versus 2021.Why Do Consumers Like Subscriptions?The top reasons that PipeCandy’s research indicates that consumers like subscriptions include:Saves timeNo need to remember to shop regularlyMore convenient than shopping in a physical storeMoney-savingAvailability of higher-quality itemsMore variety in product offeringsThe research highlighted the following reasons why consumers initiate a subscription:Financial incentives (discounts, savings, etc.)To try something newRecommendationThe research indicates the following reasons consumers stick with a subscription:Value for their moneyPersonalized experienceConveniencePotential Growth Suggests an Investment OpportunityThe growth of the subscription economy suggests that there may be a potentially attractive opportunity to invest in companies that offer subscription-based pricing plans.How may individuals gain access to companies in the subscription economy?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 offer an attractive vehicle for individuals looking to invest in companies offering subscription-based pricing models.For a complete list of SUBS holdings, please click here.[1] All data sourced from: State of the US Direct-to-Consumer Subscriptions 2022 – Industry Report, PipeCandy, 2022[2] 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. the SP 500 is a stock market index tracking the performance of 500 large companies listed on the stock exchanges in the United States. The S&P Retail Index measures the performance of retail stocks within the S&P 500. Note that some companies that are constituents of the SEI are also constituents of the S&P 500 and S&P Retail Index.[3] Compound annual growth rate, or CAGR, is the mean annual growth rate of an investment over a specified period of time longer than one year. It represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios, and anything that can rise or fall in value over time.“Compound Annual Growth Rate: What Is CAGR? – Investopedia”[4] GMV – the dollar value of all merchandise sold as part of subscription boxes.
SUBS Subscription Economy Report (July 1-July 22)
Industry updates from the Fount Subscription Economy ETF (SUBS).Clickhere to access the full list of holdings.Microsoft and Netflix Team UpAfter first announcing plans to launch a cheaper, ad-supported subscription plan to Netflix in April, Microsoft has been named Netflix’s global advertising and sales partner. This means that all ads streamed through Netflix will be exclusively available through Microsoft’s platform. Netflix stated that their long-term goal is give more choices to consumers and a premium, better-than-linear TV brand experience for advertisers. [1]MicrosoftXfinity Stream AppComcast announced the launch of the Xfinity Stream app on Apple TV 4K and Apple TV HD, giving Xfinity TV customers another way to access their subscriptions. The redesigned app offers editorial recommendations that makes it easier to find new content to watch. There is also a new personalization algorithm that allows customers to continue watching their shows or movies across any platform or device. [2]ComcastNew Google Meet FeaturesFeatures which were previously only available on Google Workspace are now being offered to Google One subscribers. The new Google One features include:- the ability to have group calls lasting up to 24 hours (up from a previous limit of one hour)- access to Google Meet’s background noise filtering feature- support for recorded video callsThe features will be available to subscribers in US, Canada, Mexico, Brazil, Japan, and Australia who pay for 2TB of storage or more. [3]GoogleMore Subscription Features for InstagramInstagram announced an expansion of test features for their creator subscription services. The initial features included subscriber-only stories, subscriber badges, and subscriber-only livestreams. The new updates to Instagram subscriptions are:- subscriber group chats (that can include up to 30 people)- subscriber-only reels and posts- ‘subscriber-only’ tabs on a creators’ profilesMeta does not take a percentage of creator earnings and hopes Instagram subscriptions can be a way for creators to establish a sustainable and predictable income. [4]InstagramSnapchat for WebSnapchat+ subscribers in the United States, United Kingdom, Canada, Australia, and New Zealand will be able to access Snapchat for Web. With Snapchat for Web, users can send messages and snaps, video chat, and make regular calls from their desktops. Snap plans to bring its Lenses feature to video calls in the future. Just like the mobile app, messages sent on Snapchat for Web will be deleted after 24 hours, and users will not be able to take screenshots. [5]SnapLearn 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) Parakhin, Mikhail. “Netflix names Microsoft as partner for new consumer subscription plan,” Official Microsoft Blog, July 13, 2022.2) “Xfinity Stream App Launches on Apple TV 4K and Apple TV HD,” Comcast, June 30, 20223) Porter, Jon. “Google Meet’s premium video calling features come to individual subscribers,” The Verge, July 11, 20224) Silberling, Amanda. “Instagram is adding more features to its creator subscriptions test,” Tech Crunch, July 14, 2022.5) Malik, Aisha. “Snap launches Snapchat for Web to bring the app’s core features to desktop,” Tech Crunch, July 18, 2022.
MTVR Metaverse Report (July 11-July 22)
Industry updates from the Fount Metaverse ETF (MTVR).Clickhere to access the full list of holdings.Google to Test AR GlassesGoogle revealed that they will conduct tests for of their prototype augmented reality (AR) glasses in public settings. The glasses, which look like normal glasses, will be tested for features like real-time translating and showing directions inside the lenses. The device has an in-lens display, microphone, camera, and an LED light that turns on when the glasses are recording image data. [1](Google)Digital Collectibles as Snap FiltersSnap Inc. wants to let creators show off their digital collectibles as useable AR filters. Testing for this feature will begin in August, and selected artists will be able to create and mint their own NFTs (non-fungible tokens) on another platform, and then import them into Snapchat as Lenses. According to reports, Snap does not plan to charge creators to display their NFTs. [2](Snap)Blackpink in Your (Metaverse) AreaWorld famous K-pop girl group Blackpink will hold an in-game concert in collaboration with Krafton Inc.’s PUBG (PlayerUnknown's Battlegrounds) mobile game. This will be the first time a Korean artist will perform a virtual concert using 3D avatars. The foursome, after a 20-month hiatus, will perform their hits and reveal a special track. PUBG Mobile players in North and South America will be able to watch the concert on July 22-23 and July 29-30. [3](PUBG Mobile)Avatar Cover ImagesMeta Platforms is continuing to experiment with avatars by adding a new graphic cover image feature. The feature lets Facebook users include their avatars in their profile’s cover image and add their avatars onto imagined scenes. [4] This comes after the introduction of the avatar store which allows users to purchase digital clothing items for their personal avatars. (Matt Navarra Twitter)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) Lesswing, Kif, “Google will once again test augments reality glasses in public,” CNBC, July 19, 2022.2) Mehta, Ivan, “Snap eyes adding NFTs as AR filters in Snapchat,” Tech Crunch, July 13, 20223) Bang, Jun-sik, “Blackpink to hold K-pop’s first in-game concert on PUBG mobile game,” The Korea Economic Daily, July 12, 20224) Hutchinson, Andrew, “Meta Tests New Option to Create Avatar-Aligned Cover Images for Your Facebook Profile,” Social Media Today, July 18, 2022
Fount ETFs Portfolio Update: 2022 Rebalance
1) Wilson, Ciana, “Adobe and the metaverse: the future of immersive,” Adobe Blog, April, 12, 2022.2) Nitta, Tuji, “Bandai Namco to spend $130m creating Gundam 'metaverse',” Nikkei Asia, March 6, 2022.3) Kim, Do-Hyong, “Kakao to Implement metaverse based on interests,” The Dong-A Ilbo, June 8, 2022.4) “KRAFTON, INC. PARTNERS WITH NAVER Z TO BUILD AN NFT METAVERSE PLATFORM,” Krafton Press Release, February 9, 2022.5) Hybe Company Website.6) Snowflake Company Website.7) Cadence Design Systems Company Website.8) CVS Health Company Website.9) Paychex Company Website.
Will the Metaverse Change the Face of Education?
At-home learning, aided by technological advances, became a mainstay during the recent COVID-19 pandemic. Now that restrictions have been lifted, individuals have become more comfortable with remote learning. Does the metaverse have the potential to change the face of education?Growing Acceptance of Remote LearningRemote learning at the university level is growing while on-campus enrollment is declining, according to an article in DiverseEducation.[1] Over the past several years, remote learning has been accomplished through platforms like Zoom. However, with the anticipated growth of remote learning, the metaverse may offer a better option.Potential Benefits of the Metaverse in the Field of EducationAugmented and virtual reality (AR & VR) may allow for substantial improvements overcurrent onlineplatforms such as Zoom. What potential advantages does the metaverse offer education?Creating an Engaging and Life-Like ClassroomThe metaverse may enable educational institutions to create more life-like classroom environments, even creating a digital twin of its physical campus. Learners may create personal avatars to interact with others in a digital classroom.Promoting CommunicationPhysical distance can create feelings of isolation and loneliness among remote learners. Virtual classrooms may allow remote learners to interact and collaborate via their personal avatars with other participants and instructors.DiversityThe metaverse may allow individuals from around the world to interact in digital classrooms, allowing interaction among individuals whose paths may never have crossed in the physical world. Time and distance are virtually erased in the metaverse.Fully Immersive ExperienceAR and VR may allow for fully immersive educational experiences. Think about virtually dissecting a frog in a metaverse lab. Rather than just seeing photos of historical locations, imagine walking through digital recreations.Is Learning Enhanced?Can the metaverse enhance the learning experience and improve educational outcomes? Consider the results of one study.Prominent edtech researcher Richard Mayer published a paper describing an experiment to test the hypothesis that a lesson in VR would be more effective than the same lesson delivered via standard video.The study took 100 middle school students on a virtual field trip to learn about climate science. Some students were equipped with a VR headset, while others watched the same material in standard video on a computer screen.The group in the VR group scored significantly better on an immediate post-test and on a test given later in the term. The VR group also reported higher presence, interest, and enjoyment.[2]Additionally, a recent study by consultant PwC found that 40% of VR learners are more confident in applying what they’ve been taught and feel 150% more engaged during classes.[3]The Future Is NowTen colleges have teamed up with technology companies to create metaversities – digital twins of their campuses. Most notable are Morehouse College in Georgia, University of Maryland, and West Virginia University.[4]As the technology improves, we expect more educational institutions to embrace the metaverse as part of their remote learning platforms.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 provide an attractive vehicle for individuals to gain exposure to the metaverse.For a complete list of MTVR holdings, please click here.[1] Kelliher, Rebecca, What Could the Metaverse Mean for Higher Education?, DiverseEducation, 6/9/22[2] Young, Jeffrey R., Can the Metaverse Improve Learning? New Research Finds Some Promise, EdSurge, 4/29/22[3] Edward, Roz, Morehouse Breaking Bold New Technology for Metaverse Learning, Atlanta Daily World, 5/21/22[4] Melnick, Kyle, 10 “Metaversities” Are Opening Across the US This Fall, VKScout, 4/7/22