Video Gaming ETFs

This summer has been a boon for the Video Gaming industry, and related stocks have been on the move with leading names ATVI and TTWO both rising on a pick-up in trading volume in the options (predominantly calls) on both companies.

ATVI for example is trading at a multi-year high on gigantic trading volume in recent sessions as is related stock EA.

While we read about the SEC registration of XLZ (SPDR Leisuretime ETF) in late 2010, the product still has not hit the market, with the idea behind this ETF was to provide exposure to “Leisure” sub-sectors including Cruise Ship Operators, Theme Parks, Restaurants, and Video Game companies.

Video gaming stocks typically do not have significant weightings in broad Technology or Software related ETFs (for example EA has a 0.60% weighting in PSJ (PowerShares Dynamic Software, Expense Ratio 0.60%) and RYT (Guggenheim S&P Equal Weight Technology, Expense Ratio 0.50%) carries a 0.50% weighting, so getting pure-play if not diversified via “leisure” exposure to either traditional “Console” type video games and/or online video gaming companies based in the U.S. or abroad is still unachievable by means of an ETF.

While MSFT and SNE have a number of business lines and are not solely reliant on, in the case of Microsoft the fortunes of the X-Box and in Sony’s case, the Playstation consoles, both of these stocks are represented in various ETFs. [Internet ETFs: Is the Dot-Com Bubble Back?]