Franklin Templeton Expands Metaverse ETF to Include AI and Blockchain Exposure
Changes to Take Place on June 7
Franklin Templeton is expanding its metaverse ETF to add artificial intelligence and blockchain exposure, renaming the fund to the Franklin AI, Metaverse and Blockchain UCITS ETF.
The fund, which tracks the Solactive Global Metaverse Innovation index, will add another 15 companies to its portfolio, increasing the total to 75. The themes within the index will be condensed to four categories, from seven, including metaverse ecosystem, blockchain technology, digital asset platforms, and AI applications and services.
The ETF’s investment objective, providing exposure to technologies that offer products and services around the metaverse and support blockchain technologies, will remain unchanged.
Top Holdings and Performance
METU’s top three holdings are Nvidia (8.2%), Meta Platforms (5.4%) and Coinbase Global (5%).
Franklin Templeton launched METU in September 2022, with assets growing to a conservative $3.6 million since its inception. METU’s performance has been steadily improving, with a year-to-date gain of 15.6%.
Competition in the Metaverse ETF Space
Recently, HANetf overhauled its metaverse ETF into a ‘Web 3.0’ strategy, with a new name and index, along with broadening its sector exposure.
Roundhill Investments, however, exited the European ETF market last October, after announcing the closure of its metaverse ETF just 18 months after launching. In the U.S., Franklin Templeton manages $17.6 billion in 60 ETFs, including 13 bond ETFs and 37 equity ETFs.
Franklin Templeton’s ETF Offerings
Franklin Templeton focuses on broad equity, bond, and country funds, with no metaverse ETF in the U.S. The fund most similar to the U.K. product is the $20.9 million Franklin Intelligent Machines ETF (IQM), which has gained 38% over the past year.
Conclusion
Franklin Templeton’s decision to expand its metaverse ETF to include AI and blockchain exposure is a significant development in the growing metaverse and Web 3.0 space. The changes take effect on June 7, with the renamed fund offering investors broader exposure to emerging technologies.
FAQs
What is the Franklin AI, Metaverse and Blockchain UCITS ETF?
The fund is a newly renamed ETF that tracks the Solactive Global Metaverse Innovation index and includes artificial intelligence and blockchain exposure.
What is the current performance of the METU ETF?
As of now, the METU ETF has a year-to-date gain of 15.6%.
Has Franklin Templeton discontinued any other metaverse ETFs?
No, Franklin Templeton has not discontinued any other metaverse ETFs. They are expanding their existing metaverse ETF to include AI and blockchain exposure.
Are there any other metaverse ETFs offered by Franklin Templeton?
No, the Franklin AI, Metaverse and Blockchain UCITS ETF is the only metaverse ETF currently offered by Franklin Templeton in the U.K. In the U.S., they do not have any metaverse ETFs.
