Can Videogame ETFs Continue their Hot Streak?

  • (1:10) – How Did The Pandemic Impact The Gaming Industry?
  • (9:50) – What Are The Growth Expectations Going Into 2021?
  • (17:15) – Console Wars: The Next Generation Releases
  • (24:30) – Strength In Mobile and Cloud Gaming
  • (32:10) – VanEck Vectors Video Gaming and eSports ETF: ESPO
  • (39:50) – Episode Roundup:

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In this episode of ETF Spotlight, I speak with JP Lee, Product Manager at VanEck, about the fast-growing video gaming and esports industry.

Video games and esports are one of the best performing areas of 2020. The four ETFs in this space–VanEck Vectors Video Gaming and eSports

ESPO

, ETFMG Video Game Tech

GAMR

, Roundhill Bitkraft Esports & Digital Entertainment

NERD

and Global X Video Games & Esports ETF

HERO

are all up more than 65% year to date.

People stuck at home during the pandemic are spending a lot of time and money on videogames, and some of these trends can continue even after movie theaters, bars and sports venues reopen. In fact, the industry was growing fast even before COVID-19. Per VanEck, the industry has benefited from three broader trends.

Microsoft

MSFT

and Sony

SNE

released their new next-generation gaming consoles recently. What should investors know about them? We also discuss the new trends like mobile gaming, cloud gaming and subscription models.

ESPO—the most popular videogaming ETF—holds companies that derive at least 50% of total revenues from video gaming and/or esports. Tencent Holdings

TCEHY

, Sea Limited

SE

Nvidia

NVDA

and AMD

AMD

are its top holdings. The fund has gathered $442 million in assets and has surged more than 70% in 2020. Tune into the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email

[email protected]

.


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