Metaverse has rapidly become a buzzword in the recent year, with significant development in technologies, user base and content around the world. In fact, many of the related Metaverse themes have long been among the sub-sectors covered by the Premia FactSet Asia Innovative Technology Index that our namesake ETF tracks. With the FactSet RBICS technology, it is possible to overcome the constraints and sometimes mislabelling of traditional GICS sector definition, and identify the relevant themes at more granular level including for technology conglomerates with multi-disciplinary functions. As part of the ongoing review, the index was recently updated and renamed as Premia FactSet Asia Metaverse and Innovative Technology Index (AMIT) to better reflect the core elements and spirits of the strategy. In this article we discuss more about the rationales behind the update, and how the strategy captures the innovative technologies and metaverse related opportunities in Asia.

We see the need to evolve from conventional geography centric or factor-based asset allocation models to sector and megatrend-minded models to capture secular alpha from structural changes.