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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 · 24 views
Bong-Geun Choi
Mar 24, 2023
How Can Subscription Companies Weather Economic Downturns?
Almost 60% of subscription-focused companies anticipate an economic downturn in 2023, while 48% and 37% believe that acquiring and retaining customers, respectively, will be a challenge, according to a new report released by e-commerce and payments company PYMNTS.[1] However, focusing on a few key metrics may be the key to helping these companies weather an economic downturn. Focus on Customer Lifetime ValueCustomer Lifetime Value (LTV) is often defined as the average amount of money you expect to receive from a customer over the life of the business relationship. Only 8% of companies in the PYMNTS report tracked LTV. Yet, those who did track and optimize LTV were five times more likely to be among the top-performing subscription-based companies, defined as companies that minimized revenue lost due to failed payments. According to the report, analysis of LTV can help subscription businesses recover up to 60% of lost revenue due to failed payments which may represent a 13% increase in overall revenue. Tracking Failed PaymentsCustomer churn rate is one of the most frequently watched metric for subscription-based companies.[2] However, according to PYMNTS, one of the major drivers of involuntary churn is failed payments, accounting for half of total churn. On the whole, only 15% of subscription companies tracked failed payments, with the remainder viewing the metric as a “cost of doing business” and out of their control. However, nearly 67% of the top-performing subscription companies tracked failed payments. The report went on to note that subscription companies lost an average of 9% of sales to failed payments, which equated to $278 billion in the 12 months ending 9/30/22. Top-performing companies that tracked LTV and failed payments were able to recover 61% of failed payments. Causes of Failed PaymentsThe top causes of failed payments included software errors and a customer’s credit card being incorrectly declined. Thus, the means to address failed payments is within reach of most companies. Focus on the Right MetricsFocusing on LTV and failed payments may improve a subscription-based company’s chances of weathering an economic downturn and becoming a top performer. The Fount Subscription Economy ETF (SUBS)The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before feesand 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. [1] All data sourced from: The State of Subscription Business: Best Practices and Business Performance Drivers, PYMNTS, January 2023[2] Churn is the rate at which customers stop doing business with a company. It is calculated by comparing the number of lost customers to the total number of customers at the start of the period.
1 min read · 65 views
Bong-Geun Choi
Mar 16, 2023
How the Metaverse May Change 'Business as Usual'
With the creation of new virtual spaces and worlds, the metaverse has the potential to change the way that business is conducted. At the very least, it may force companies to rethink how they engage with their customers. What are some potential ways the metaverse may affect business? Engaging Consumers DigitallyYounger consumers are less likely to watch network or cable television, read newspapers and magazines, or listen to the radio, according to a study published by Wunderman Thompson Intelligence (WTI).[1] As a result, traditional marketing strategies historically employed by companies may no longer be relevant. However, today’s consumers are more comfortable, and often prefer, interacting with brands digitally. WTI found that: 73% of consumers said it’s easier to relate to a brand that has a digital presence66% prefer to engage with brands digitally62% feel they have a closer relationship with brands with a strong digital presence. Gaming may provide a medium for companies to connect digitally with consumers. GamevertisingConsumers are spending more time on gaming, resulting in brands upping their presence on these platforms. For example, Netflix, Hellmann’s, and Ally Financial created branded islands in Nintendo’s Animal Crossing: New Horizons gaming platform. Automaker Ferrari created its latest model in Fortnite. Additionally, some brands are creating their own gaming presence. Fashion brand Balenciaga released its 2021 collection via a video game created expressly for them. Players navigate a futuristic world, passing characters wearing the luxury brand’s latest designs. In addition, brands such as Burberry, Stella Artois, and Coca-Cola launched their own non-fungible tokens (NFTs) available either on gaming platforms or via direct auctions. Metaverse gaming may provide a way for brands to connect with difficult-to-reach younger consumers. New Retail FormatsMetaverse technologies, such as augmented reality (AR) and virtual reality (VR), are presenting new ways for brands to sell online and in physical locations. Via VR, brands are able to construct 3-D stores through which consumers may browse and pick out items as they would in a brick-and-mortar store. Some are creating digital twins of their flagship stores, creating flagship digital stores. Physical stores are blending digital overlays using AR technology. One example is AR try-ons of clothing and even cosmetics.Working in the MetaverseAs more companies embrace remote work, metaverse technologies, such as VR, may help to bridge the gap of physical distance. Companies can set up virtual offices where employees, via avatars, can interact and collaborate. As technology continues to improve, the digital representation of the office and the individual will likely become more realistic, fostering a more interactive environment. Such platforms may allow companies to hire the most qualified individuals, irrespective of where they live.[2] 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] All data sourced from: Into the Metaverse, Wunderman Thompson Intelligence, 9/14/21[2] For more information, please see our blog Can the Metaverse Improve the Work-From-Home Experience?
1 min read · 64 views
Bong-Geun Choi
Mar 13, 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 · 2,237 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 · 2,065 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 · 1,916 views
Tiago Amaral
May 30, 2022
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Subscriptions and the COVID Effect
The COVID-19 pandemic and its associated lockdowns created an upheaval in consumer behavior and spending patterns. Unable to move about freely, spending patterns shifted to industries enabling “at-home” lifestyles such as delivery and e-commerce. As economies began opening up, much of these spending patterns reverted closer to their pre-pandemic norms. One exception was spending on subscriptions, according to a recent study written about in the Wall Street Journal.[1] Why have subscriptions bucked the trend? COVID-19 Drives Substitution SpendingUnable to leave their homes, individuals appeared to have substituted spending that occurred in physical locations for their online or delivery counterparts. This shift in spending was more pronounced among consumption patterns involving impulsive or discretionary purchases, such as apparel and restaurant dining, compared to categories involving more routine items, such as meal kits. Subscription Spending Was the ExceptionHowever, the study found that subscription spending did not experience the decline that other categories did. It did not revert to its pre-pandemic spending. What may explain the stickiness of subscription spending? Explaining the Stickiness of Subscription SpendingOne reason that may explain why subscription spending did not decline with the lifting of lockdown restrictions is that many subscriptions renew automatically. This “autopilot” feature of many subscriptions helps companies retain subscriptions in several ways:People forget to cancel their subscriptionsSome continued with their subscription because they found it too difficult to cancelOthers continued their subscription because they thought they might need the product or service again in the futureThe longer individuals maintain their subscription, the more likely they are to feel that the product or service is necessary rather than a “nice-to-have” Another potential reason is that people consistently underestimate what they spend on subscriptions. The study showed that nearly 100% of subscribers were unaware of what they actually spend on subscriptions. Many were spending 3.4 times more on subscriptions than they thought they were. Given the commitment involved in signing up for a subscription, consumers may be more thoughtful before subscribing to a product or service. Thus, they may be less likely to cancel the subscription. Consumers may be satisfied with their subscription experience and, therefore, likely to continue the service. Subscriptions May Lead to Longer-Term Sales GainsThe COVID pandemic resulted in a boost to subscription revenue that appears to be long-term. It also demonstrates the power of subscriptions to lead to longer-term financial benefits. Therefore, companies that offer subscription services may provide individuals with an attractive investment opportunity. 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 present an attractive vehicle for individuals to gain exposure to companies offering subscription-based pricing models. [1] Forman, Laura, Your Wallet Is Being Drained by Subscriptions. Wall Street Thanks You, The Wall Street Journal, 12/9/22; Oblander, Shin & McCarthy, Daniel Minh, Estimating the Long-Term Impact of Major Events on Consumption Patters: Evidence from COVID-19, 11/29/22
1 min read · 78 views
Bong-Geun Choi
Mar 02, 2023
Metaverse Technologies May Redefine Traditional Gathering Spaces
Metaverse technology is breaking down the divide between the physical and digital worlds. As a result, traditional gathering spaces are evolving, and the definition of a home, event, and even a vacation is evolving. New Virtual VenuesNo longer do individuals have to travel to stadiums, arenas, or theaters to take in performances or for entertainment. Now, you can sit in the comfort of your home and attend events in virtual space. A survey conducted by Wunderman Thompson Intelligence (WTI) found that over 60% of respondents found attending a digital concert, play, or musical appealing. Some 78% founds digital movies appealing.[1] Concerts from performers such as Lil Nas X, Ariana Grande, Post Malone, and BlackPink have already been held in virtual spaces such as Fortnite and Roblox. Virtual venues are also playing host to smaller, more intimate gatherings. A social entrepreneurship festival hosted 40 people in a networking and mingling event. Virtual social clubs, nightclubs, and cabarets are popping up. Virtual venues have the flexibility to host events with the number of attendees ranging from several people to millions. Liminal Spaces – Blending the Physical and DigitalA liminal space blends elements of both the physical and digital worlds. Often, digital elements are transposed onto the physical. One example includes an augmented reality (AR) exhibition that projects virtual sculptures along New York’s High Line, which are visible through the use of special glasses. Other installations include virtual artwork that moves and transforms in response to visitors’ movements. One production in London of an adaptation of Shakespeare’s A Midsummer Night’s Dream pairs live actors with light and technology to transform the actors on stage and bring the audience into the production, enabling them to participate as fireflies. The possibilities of liminal spaces could extend to retail spaces, brand hubs, and business centers. Digital Real EstateReal estate is now being sold in virtual worlds in the metaverse. Mars House, the world’s first digital house, sold for $500,000 in March 2021. Virtual worlds, such as Decentraland and the Sandbox, have sold millions of dollars’ worth of virtual real estate. Buyers are able to monetize their spaces, setting up virtual stores or other types of business outlets. Virtual real estate may allow owners to develop and monetize space within the metaverse. TravelportationCompanies, such as Microsoft, are creating travel experiences through metaverse technology. Donning virtual reality headsets, individuals may travel to faraway locations to which they may not be able to travel physically. Such technology may be a boon to individuals with mobility issues. 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] All data sourced from: Into the Metaverse, Wunderman Thompson Intelligence, 9/14/21
1 min read · 128 views
Bong-Geun Choi
Feb 22, 2023
Convenience and Affordability are Key to Retaining Customers During Difficult Economic Times
Difficult economic times are causing consumers to reassess their spending, causing them to focus on essentials rather than nice-to-haves. This holds true as consumers also analyze their spending on subscriptions. However, the situation may not be as bleak as the headlines suggest, and there are steps that companies can take that may help them to retain their subscribers. Not All Gloom and DoomPYMNTS, a consumer payments consulting firm, released a report highlighting trends in the subscription economy and strategies that may help companies retain customers.[1] Their findings indicate that over 80% of U.S. households have at least one subscription. While many consumers indicated that they are considering cutting some subscription services, more than half indicated that they were considering adding another subscription. Cutting ExpensesThe main reason consumers gave for either cutting or considering cutting a subscription was expense reduction. Thus, offering consumers a compelling value proposition may be vital to retaining customers. Give Consumers What They Consider ImportantAmong consumers, affordability and convenience were essential to inducing them to retain or add subscription services. These factors include: Free shippingEnhanced product descriptions and detailsCoupons or promotionsInventory statusA quick “add to cart” optionBeing able to view savings by subscribing vs. buyingMeaningful product recommendations Amazon – A Means to Consolidate Subscriptions?Amazon’s Subscribe & Save platform allows consumers to arrange for the future delivery of groceries and other products in exchange for substantial discounts. The service may act as a consolidator, enabling consumers to subscribe to one platform for a wide variety of products rather than juggle multiple subscriptions. Data from PYMNTS, indicates that consumers with a subscription to the Amazon service are canceling more subscriptions than those without the service. Additionally, consumers appear to prioritize the Amazon service over other subscription platforms. Amazon’s service seems to have the two main features demanded by consumers, namely, affordability and convenience. Add Affordability and Convenience to Retain CustomersThe PYMNTS report indicates that affordability and convenience are important factors that may help companies retain subscribers during difficult economic times. How may individuals gain exposure 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 present an attractive vehicle for individuals to gain exposure to companies offering subscription-based pricing models. For a full list of holdings, please click here. [1] All data sourced from: Subscription Commerce Conversion Index: Subscribers Seek Affordability and Convenience, PYMNTS, November 2022
1 min read · 126 views
Bong-Geun Choi
Feb 13, 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