Franklin Templeton Adds AI, Blockchain to Metaverse ETF

Franklin Templeton Adds AI, Blockchain to Metaverse ETF

In Europe, Franklin's Metaverse UCITS ETF will rename as the Franklin AI, Metaverse and Blockchain UCITS ETF.

|
Reviewed by: Ron Day
,
Edited by: etf.com Staff

Franklin Templeton is expanding its metaverse ETF to add artificial intelligence and blockchain exposure.

As a result, the name of the Franklin Metaverse UCITS ETF (METU) will change 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, boosting it to 75.

Themes within the index will also be cut to four categories from seven, which include metaverse ecosystem, blockchain technology, digital asset platforms, and AI applications and services.

The ETF's investment objective—providing exposure to technologies to offer products and services around the metaverse and supporting blockchain technologies—will stay the same. The changes take place June 7.

Franklin Templeton Metaverse Fund Holdings

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 $3.6m since its inception.

HANetf recently overhauled its metaverse ETF into a ‘Web 3.0’ strategy, with a new name and index alongside broadening its sector exposure.

Roundhill Investments 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. The largest is the Franklin FTSE Japan ETF (FLJP) with $2.09B in assets. In the last trailing year, the best-performing Franklin Templeton ETF was FLJH at 36%. The most recent ETF launched in the Franklin Templeton space was the Franklin Bitcoin ETF (EZBC) on Jan. 11.

The company, which focuses on broad equity, bond and country funds, has no metaverse ETF in the U.S. The fund most similar to the U.K. product is probably the $20.9 million Franklin Intelligent Machines ETF (IQM), which has gained 38% over the past year.

In etf.com's latest episode of Talk ETFs, Franklin Templeton global ETF head Patrick O'Connor talks about the company's expanding ETF offerings.

This article originally appeared in etf.com's sister publication ETF Stream.