MTVR Metaverse Report (August 26-September 2)

Industry updates from the Fount Metaverse ETF (MTVR). 
Click here to access the full list of holdings. 
 

Meta to Release a New VR Headset in October 
Meta 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]

 

Meta

 

Apple Files ‘Reality’ Trademarks
Apple 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 Zelbo

 

Post Your NFTs on Facebook and Instagram
Meta 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]

 

Meta

 

Naver Z to Power Metaverse Communities in Thailand 
NAVER 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]

 

Naver

 

Learn how to invest in your future experiences with Fount ETFs

 

The 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 click here.

 

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 click here.

 


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.

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Inhee Lee

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.