Fidelity Metaverse ETF

Fidelity Metaverse ETF (FMET) is an index fund that tracks the Fidelity Metaverse Index. The index is a rules-based basket of global companies in chips, data centers, software, gaming and smartphones that are tied to virtual and augmented reality. Its 0.39% expense ratio is below the 0.48% average of similar funds. It weights stocks by trading volume rather than company size. It is small, with about $44 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, FMET returned -1.2%, 7th of 9 among similar funds.
• Its worst full calendar year was 2024 (+6.8%); its best was 2023 (+39.2%).
• The deepest fall in its price history was 29.2% (May 4, 2022 to Nov 3, 2022), recovered by May 26, 2023.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 43.51% of assets. It also reported 4.02% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $1.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +16.66%, +8.96%, -7.22%.

FMET aims to match the Fidelity Metaverse Index before fees. Fidelity built the index with its own rules. The fund puts at least 80% of its assets in index stocks and in depositary receipts, which are certificates that let investors own foreign shares through a US listing. Fidelity describes the metaverse as a future internet of shared virtual and augmented-reality worlds that many people use at once. The index looks for companies in six areas: computing hardware, digital infrastructure, design and engineering software, gaming, web development and content, and smartphones and wearables.

Stocks that pass quality screens are ranked by market share in dollar revenue and by a "thematic relevancy" score. That score combines revenue from these activities with natural language processing (NLP), which is software that scans company documents for relevant keywords. Companies that earn over 50% of their revenue from these areas, or hold at least 5% market share, make up 85% or more of the index. Other companies are capped at lower weights. Each stock is weighted by a modified measure of average daily trading volume, with caps, rather than by company size.

The fund mainly buys the index stocks directly, though it may not hold all of them. As of June 30, 2026, it held 50 stocks, and the top 10 made up about 44% of assets. It also held one tiny Nasdaq-100 futures position. Portfolio turnover was 33%.

• FMET charges 0.39% a year, versus an average of 0.48% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).

FMET is a narrow theme fund of about 50 tech, gaming and data-center stocks, and it has moved more sharply than the broad market.

FMET could add a focused tech and gaming slice to a portfolio. It costs 0.39% a year. In the SEC's standard example, that comes to $40 after one year and $493 after 10 years on $10,000. It swings hard. As of Oct 27, 2026, its three-year volatility was 22.1%, and over the past year it moved about 1.44 times as much as the market. It launched April 19, 2022, so it has no record from the 2008 or 2020 crashes or from the start of the 2022 bear market. Its deepest drop was 29.2%, from May to November 2022. It recovered 6.7 months later, in May 2023. Its weakest full calendar year was 2024, a 6.8% gain. Anyone forced to sell in a slump could lock in losses. The 0.73% yield, paid quarterly, adds little income. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.