With the broad based equity index products such as SPDR S&P 500 ETF (NYSEArca: SPY) and the small-cap iShares Russell 2000 (NYSEArca: IWM) retreating from near 2011 highs recently, the resilience of Market Vectors Gaming ETF (NYSEArca: BJK) has caught our attention.
Just last Friday, BJK traded at its highest level since inception ($35.97 a share), and is within shouting distance of that level currently despite the volatility across U.S. and international equities that we have noted recently.
BJK has registered gains of 12% year to date versus the S&P 500 up 4.83%, and in the trailing one year period it has returned 47.97% versus the S&P’s 22.12%.
Trading only around 21,000 shares on average daily, do not be fooled into thinking that the ETF is “illiquid” due to this lower trading volume.
Top components in BJK include Las Vegas Sands (NYSE: LVS), Wynn Resorts (NasdaqGS: WYNN), International Game Technology (NYSE: IGT) and MGM Resorts International (NYSE: MGM) for instance, and these equities collectively trade millions of shares each daily on their own right.
Market Vectors Gaming ETF