Fidelity Metaverse ETF (FMET US) – Portfolio Construction Methodology

The underlying Fidelity Metaverse Index (NR) targets global equities enabling the metaverse across computing hardware, digital infrastructure, design and gaming software, web content services, and smartphone or wearable technology. The universe is developed-market listings plus emerging-market stocks in the top 70% by market cap, limited to common stocks with theme-related revenues, market cap and free-float market cap ≥ USD 250m, six-month ADTV ≥ USD 1.25m, free float ≥15%, and capacity to hold a 2% index weight with USD 25m of trading. A thematic quality screen removes names failing at least two of four tests on revenue, analyst coverage, operating cash flow, and sales growth. Around 50 constituents are chosen via market-share and thematic-relevancy rankings with ±20% buffers. Weights follow the cube-root of free-float market cap, with caps at 22.5%, 4.5% and 2%, a 45% aggregate limit across names above 4.5%, and a ≥85% pure-play floor.

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