Legal & General Investment Management have joined the ranks of companies launching a metaverse ETF as it expands its thematic range with four new ETFs.
Three of LGIM's new ETFs focus on specific themes of optical technology and photonics, emerging cybersecurity and the metaverse, while the latter is based in various global thematic investments.
The launch makes LGIM the third firm in a week to launch a metaverse ETF, with both Fidelity International and Franklin Templeton announcing launches yesterday.
While optical technology and photonics, emerging cybersecurity and global themes all sit within LGIM's thematic range, the metaverse ETF will be part of the firm's newly created access range, meant to provide exposure to investors seeking access to non-traditional investment opportunities.
Franklin Templeton adds new metaverse ETF to $12bn LibertyShares platform
All of the new ETFs also specifically include an ESG overlay, which aims to exclude companies not compliant with the UN Global Compact.
The L&G Metaverse ESG Exclusions UCITS ETF tracks the iStoxx Access Metaverse index, targeting companies involved in hardware provision, software advances, networks and digital payments to "augment human policing of the metaverse". It has a TER of 0.39%.
The L&G Optical Technology & Photonics ESG Exclusions UCITS ETF will follow the Solactive EPIC Optical Technology and Photonics index.
It is the first ETF in Europe to track the theme, investing in companies involved in the science of creating, manipulating, transmitting and detecting light. LGIM said that the ETF uses the expertise of the European Photonics Industry Commission. It has a TER of 0.49%.
Fidelity unveils metaverse ETF as part of thematic range
Meanwhile, the L&G Emerging Cyber Security ESG Exclusions UCITS ETF tracks the Solactive Emerging Cyber Security index, focusing on companies involved in blockchain-enabled security solutions, hardware security and threat intelligence.
It aims to complement the LGIM Cyber Security UCITS ETF (HURN) that launched in 2015. It has a TER of 0.49%.
The L&G Global Thematic ESG Exclusions UCITS ETF tracks the Solactive Global L&G Thematic Lookthrough index, investing in various themes while focusing on innovation and long-term growth.
It brings together the investment universes of the firm's existing individual thematic strategies with nine different investment themes. It has a TER of 0.60%.
Aanand Venkatramanan, head of ETFs, EMEA, said: "Thematic investment strategies have seen strong investor interest over recent years, thanks to their ability to capitalise on structural and foundational changes in the way we live and work.
AXA IM launches new ETF platform
"Three of the funds launched today capture some of the most innovative and disruptive companies shaping global economies, while the Global Thematic fund will seek to allow investors to gain exposure to multiple themes, in an easily accessible format."
James Crossley, head of UK wholesale distribution, added: "Thematic investing is about identifying opportunities that can drive structural and fundamental changes in our lives, work, and society. Investment strategies targeting these trends have seen strong interest from clients for many years.
"We believe these new funds provide a comprehensive addition to our ETF range, both for investors looking for purer exposure to themes, but also for those seeking to invest in a diversified way without having to pick and choose between themes."
