Fount Investment Co., Ltd., a subsidiary of Fount Inc. (together “Fount”), was established in 2015 and offers robo-advisor services to some of South Korea’s biggest financial institutions and runs a robo-advisor service app. As Fount has been recognized as a robo-advisor financial company domestically, it branched out by launching two global, thematic ETFs (exchange traded funds) in 2021: The Fount Metaverse ETF (MTVR) and the Fount Subscription Economy ETF (SUBS). The funds, which trade on NYSE Arca, are accessible to the next generation of investors who want to invest directly into their future experiences.
The Fount Metaverse ETF, ticker name MTVR, follows the Fount Global Metaverse Index and measures the performance of global companies engaged in metaverse related technologies, goods, or services. As MTVR’s portfolio must include a company that engages in the one of the four components of the metaverse (augmented reality, life log, mirror world, and virtual worlds), MTVR may be an attractive vehicle for anyone who is looking to invest in his or her future experiences in the metaverse.
The Fount Subscription Economy ETF, ticker name SUBS, follows the Fount Global Subscription Economy Index and measures the performance of companies engaged in subscription services. SUBS’ portfolio consists of companies supplying various types of subscription services in publishing, telecommunication services, software-as-a-service, etc. As the subscription economy is expected to intensify in the future because of convenience, and lower costs, SUBS may be the ideal way to invest in future of consumer experiences.
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.
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.