Diving into Next Generation Internet

Why invest in Next Generation Internet?

Web 3.0 has the potential to revolutionize the entire internet. With more than 5 billion regular users - representing the largest platform in the globe – Web 3.0 is likely to cause significant disruption as companies develop innovative ways to utilize the technology, similar to how the FAANG stocks utilized Web 2.0.

Sub-areas of Web 3.0 that can be invested in include:

• Decentralized Finance
• Decentralized Autonomous Organization
• Metaverse
• Non-Fungible Tokens and Cryptocurrencies

ETFs to gain exposure to Next Generation Internet

While there are a lot of innovative companies pushing Next Generation Internet, a more effective and less volatile way of gaining exposure could be through the use of ETFs which offer greater diversification and liquidity benefits.   

It is extremely important to note, however, that some of the companies involved in this space are highly speculative and do not reliably generate profits. But for investors with a long-term horizon, and who are comfortable with the high level of risk inherent in such an investment, the following ETFs offer a way to gain access:  

FDN – First Trust Dow Jones Internet Index Fund ETF

AUM: $4.0B

Expense Ratio: 0.51%

YTD performance: -38.7%

ARKW – ARK Next Generation Internet ETF

AUM: $1.4B

Expense Ratio: 0.83%

YTD performance: -54.9%

METV – Roundhill Ball Metaverse ETF

AUM: $491MM

Expense Ratio: 0.59%

YTD performance: -44.7%

Data for this article is as of September 15, 2022.

Disclaimer: This article is limited to the dissemination of general information pertaining to investment strategies and financial planning and does not constitute an offer to issue or sell, or a solicitation of an offer to subscribe, buy, or acquire an interest in, any securities, financial instruments or other services, nor does it constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment.