First Trust Indxx Metaverse ETF (ARVR)

Overview

The fund described focuses primarily on investing in companies that are integral to the development and expansion of the Metaverse. By allocating at least 80% of its net assets, as well as any borrowings intended for investment purposes, into securities that form the index of Metaverse-supporting companies, the fund aims to capitalize on the growth and innovation in this emerging sector. This non-diversified fund targets entities that provide critical services and products necessary for the infrastructure and applications vital to the Metaverse realm. With the Metaverse being at the intersection of virtual reality, augmented reality, and digital economies, investments in this fund could be exposed to a variety of companies, from those specializing in hardware like VR headsets and sensors to software developers and platform operators that create and maintain virtual worlds.

Products and Services

Given the focus on the Metaverse, the fund's investments are oriented towards companies offering:

• Infrastructure Services

  These include companies that provide the essential hardware and foundational technology necessary for the Metaverse to function. This can range from networking and data processing technologies to servers and storage solutions, all of which are crucial for supporting the expansive data and immersive experiences characteristic of the Metaverse.

• Application Developers

  This category covers entities that create the software enabling users to interact with the Metaverse. These applications may include virtual reality experiences, augmented reality layers, social platforms, digital marketplaces, and various forms of entertainment and educational content specially designed for the Metaverse ecosystem.

• Digital Goods and Services Providers

  These are companies involved in the creation, sale, or exchange of digital assets and services within the Metaverse. This includes virtual real estate, digital clothing and accessories, NFTs (Non-Fungible Tokens), and any other virtual items or services that users can buy, sell, or trade within these digital environments.