The everyday internet has been around since the early 1980s. This technology made it possible for everyday households to have access to the internet. Dial up required no additional infrastructure, other than a telephone network (Web 1). As the internet group and technology began to support the internet, broadband (Web2) became the industry standard in the late 1990’s. Then, the router and switch era began, with the transmission of data through packets. Ultimately, the support layers of the internet were created.
The next version of the internet is Web3 and blockchain technology. There are similarities between broadband and blockchain, with both having four supporting layers. This is a unique twist on the old technology. To simplify the layers of broadband, let us view it as four layers: Link Layer, Internet Layer, Transport Layer, and Application Layer. While blockchain layers are labeled: Layer 0, Layer 1, Layer 2, and Layer 3. What these layers have in common are: data safety, synchronization, and delivery.
The steps to purchase a product through Amazon via Web2 will be the same with Web3, but enhancement of this technology will affect how you interact with the UI (user interface). The key differences are how the data is processed and transmitted.
Realize the next generation of how we interact with people, businesses, and life through Web3; it is not just a meme but a way to the future of social interactions. Virtual reality (VR) and augmented virtual reality (AVR) will end tool user experiences. The web will no longer work in a 2D atmosphere but will become 3D. That means no more scrolling through long 2D pages on the internet, but going for a stroll through local food markets, business districts. It is not just a video game, but a video game for adults to interact with.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.
Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.
Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume.
The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.
For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities.
Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.
The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.