The Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) is up nearly 10% this year and hit another all-time high Thursday. Things have not been so sanguine for consumer discretionary industry exchange traded funds, including the Market Vectors Gaming ETF (NYSEArca: BJK).
BJK, the lone ETF dedicated to casino operators and related fare, is off 3.7% this year and has trailed XLY mightily over the past 12 months. Over that period, the broader discretionary fund is up 17.5% while the gaming ETF has lost a quarter of its value. [Two-Deck Shoe: Dueling Views on the Gambling ETF]
A look at BJK’s charts indicates the ETF could finally be getting to turn for the better.
BJK “is now attempting to reverse a 16-month bear market and has already moved above short-term moving averages (see Chart 1). While this ETF is rather thinly traded – making it a risky investment instrument – it is useful for tracking the performance of the global gaming sector,” reports Michael Kahn for Barron’s.
BJK has been hampered by retreating gaming data out of Macau, the world’ largest gambling hub. China is BJK’s second-largest country weight at 13.2% and Macau is a Chinese territory. casino industry has suffered a huge blow to VIP gaming after President Xi Jingping enacted a campaign on widespread corruption, which included thousands of officials and executives at state-owned enterprises. [Macau Illegal Transaction Crackdown Puts Gaming ETF in the Red]