It's no secret anymore that gaming, or esports, is big business and that trend should continue in 2020. That said, investors should keep gaming-focused ETFs on their watch lists for the new year.
The Morningstar name and logo are registered marks of Morningstar, Inc. The information contained in this document is the proprietary material of Morningstar. Reproduction, transcription, or other use,. ETF issuers are ranked based on their aggregate 3-month fund flows of their ETFs with exposure to Gaming. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of different ETF issuers with ETFs that have exposure to Gaming. All values are in U.S.
'Today, the gaming industry is not just about a time-killing fun thing, in fact, it is now a million-dollar worth industry,' a Business Matters article noted. 'With mobile gambling apps and online video gaming platform, you can make thousands of dollars in no time. There are certain ways through which you can make money through this industry and live a life of fortune.'
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The article went on to note that areas that will continue growing within the gaming sector include development, content creation, in-game sales, online coaching, and esports careers.
'Making money in the eSports industry is a highly obtainable goal, all you need to do is find the correct option you are passionate about and take the risk, the article added. 'Without risk, no one can ever be successful therefore it is the time to do something and make a fortune from eSports.'
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ETF investors willing to play the gaming sector in 2020 would be keen to check out these 4 funds:
- VanEck Vectors Video Gaming and eSports ETF (NasdaqGM: ESPO): With over $56 million in assets under management, ESPO is the biggest of the four. It seeks to replicate as closely as possible the price and yield performance of the MVIS® Global Video Gaming & eSports Index. The index is a global index that tracks the performance of the global video gaming and eSports (also known as electronic sports) segment.
- VanEck Vectors Gaming ETF (NasdaqGM: BJK): BJK is runner up in terms of size with over $27 million in assets. The fund seeks to replicate as closely as possible the price and yield performance of the MVIS® Global Gaming Index. For index eligibility, companies must generate at least 50% of their revenues from gaming. Gaming includes casinos and casino hotels, sports betting (including internet gambling and racetracks) and lottery services as well as gaming services, gaming technology and gaming equipment.
- Roundhill BITKRAFT Esports & Digital Entertainment ETF (NYSEArca: NERD): NERD doesn't have the asset size of the first two funds, but it's still worth a look given its current price of $15.74 as of Dec. 18. It seeks to track the total return performance of the Roundhill BITKRAFT Esports Index, which tracks the performance of the common stock of exchange-listed companies across the globe that earn revenue from electronic sports, or esports related business activities.
- Defiance NextGen Video Gaming ETF (NYSEArca: VIDG): VIDG is the smallest in terms of assets under management, but still worth a look. It seeks to track the total return performance of the BlueStar Next Gen Video Gaming Index, which consists of a modified market capitalization-weighted portfolio of the stock of companies whose products or services are predominantly tied to video gaming.
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