A gaming sector exchange traded fund (ETF) was down more than 1% in early trading Wednesday following disappointing quarterly earnings from top holding Las Vegas Sands (NYSE: LVS).

The stock slipped 6% in morning trade after Las Vegas Sands reported quarterly earnings that fell short of Wall Street expectations.

“Despite the revenue miss, margins were essentially in line with our expectations,” said Citadel Securities in a report. “Weakness in Las Vegas was offset by solid results in Macau and Singapore.”

Las Vegas Sands is the largest holding in Market Vectors Gaming ETF (NYSEArca: BJK) at 12% of the portfolio. The ETF has gained about 11% so far this year.

“Investors with a strong conviction about the prospects of the global gaming sector can consider Market Vectors Gaming ETF. However, given this exchange-traded fund’s narrow focus, investors should view it solely as a tactical satellite holding to complement a diversified portfolio,” writes Robert Goldsborough in a Morningstar analyst report on the ETF.

“Investors might think of this ETF as a way to tap into the growing worldwide middle class with increased disposable income and a taste for spending that income on games of chance,” he said.

Market Vectors Gaming ETF

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