FMET vs NXTG

FMETBFidelity Metaverse ETF

NXTGCFirst Trust Indxx NextG ETF

In short

FMET Fidelity's in-house take on the metaverse trade: a passive, global basket of roughly 60 companies building the plumbing, priced well under the typical thematic fund. A big-brand ETF in a corner usually run by boutiques.

NXTG A 5G fund that isn't a 5G-boom baby. NXTG has been running since 2011 and spreads the connectivity theme across roughly 100 stocks worldwide. Long tenure and broad reach, at a premium price tag.

Stated mandate

FMET The fund seeks investment returns that generally track the Fidelity Metaverse Index before fees and expenses.

NXTG The Fund seeks returns corresponding generally to the Indxx 5G & NextG Thematic Index and normally invests at least 90% of net assets in securities comprising that index.

Why people hold it

• FMET Charges 0.39% a year, comfortably under the 0.56% median for its global thematic peer group.
• Rules first, hunches never: it tracks the Fidelity Metaverse Index, holding roughly 60 companies worldwide rather than a manager's shifting shortlist.
• Sits in the stronger half of a crowded global thematic field of about 50 funds, with a 2022 launch and quarterly distributions behind it.

• NXTG Launched in 2011, making it a veteran inside a global thematic peer group stuffed with far more recent arrivals.
• Rules-based and wide: at least 90% of net assets sit in the Indxx 5G & NextG index, roughly 100 global names rather than a short list of megacaps.
• Upper half of its global thematic cohort on how closely it follows its stated index and what sits in the portfolio.
• Simple plumbing: a 1940 Act fund holding the stocks outright, with distributions paid quarterly.

Worth knowing

• FMET A small fund that trades thinly, which can mean wider bid-ask spreads. Limit orders are standard practice in names like this.
• One theme, roughly 60 stocks: moves can be sharper in both directions than a broad global index.
• "Metaverse" has no standard industry definition. Fidelity's own index draws the boundaries, so the lineup can look different from similarly named funds.

• NXTG 0.70% a year is above the typical fee in its global thematic group. Cheaper thematic shelves exist, including KLMT at 0.10% and UFOX at 0.30%.
• Thinly traded for its size, so bid-ask spreads can run wider and larger orders can nudge the price.
• One theme, global footprint: results ride on connectivity and network spending, and overseas holdings add currency movement to the mix.

Full FMET profile⁠

Full NXTG profile⁠