FMET: FIDELITY METAVERSE ETF
What this ETF is trying to do
The Fidelity Metaverse ETF (ticker: FMET) is an exchange-traded fund that focuses on companies involved in the metaverse. This ETF holds a collection of different stocks, which helps spread out its exposure to various companies in this sector.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.
For FMET, the numbers show growth over different time periods:
• Year-to-Date (YTD): The price return is approximately 9.92%, while the total return is approximately 10.63%.
• One Year: The price return was approximately 3.11%, and the total return was approximately 3.88%.
• Three Years: The price return was approximately 63.58%, and the total return was approximately 67.03%.
To give you an idea of price movement, the current price is $39.65. The estimated price from roughly one year ago was approximately $38.45.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. FMET has a distribution yield of approximately 0.68%. This means the cash paid out is about 0.68% of the ETF's price. Over the last 12 months, there were 4 payouts, which usually happen every quarter.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.
For FMET, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are some of the top holdings in this ETF (note that this is a partial list):
• Apple Inc: 4.82%
• Advanced Micro Devices Inc: 4.81%
• Alphabet Inc Class A: 4.70%
• Meta Platforms Inc Class A: 4.52%
• Equinix Inc: 4.48%
• Microsoft Corp: 4.44%
• Nvidia Corp: 4.33%
• Adobe Inc: 4.12%
• Take-Two Interactive Software Inc: 3.56%
• Qualcomm Inc: 3.53%
Please keep in mind that holdings can change over time.
Pros
• The ETF has shown positive price returns and total returns over the last year and three years.
• The erosion-risk score suggests a stable trend.
Cons
• The distribution yield is relatively low at 0.68%.
Beginner takeaway
When studying FMET, notice the difference between price return and total return. The total return is higher because it includes the cash distributions paid to investors. Also, remember that while this ETF holds many large companies, its performance depends on the metaverse sector.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ADVANCED MICRO DEVICES INC | AMD | 6.02% |
| 2 | META PLATFORMS INC CLASS A | META | 5.33% |
| 3 | QUALCOMM INC | QCOM | 4.72% |
| 4 | MONOLITHIC POWER SYSTEMS INC | MPWR | 4.56% |
| 5 | MICROSOFT CORP | MSFT | 4.52% |
| 6 | NVIDIA CORP | NVDA | 4.52% |
| 7 | APPLE INC | AAPL | 4.45% |
| 8 | ALPHABET INC CLASS A | GOOGL | 4.42% |
| 9 | EQUINIX INC | EQIX | 4.36% |
| 10 | DIGITAL REALTY TRUST INC | DLR | 3.87% |