As the exchange traded funds industry has matured, many new ETFs have taken on narrowly focused, niche concepts. The evolution has gone something like this: Sector funds, industry ETFs and then niche concept.
Over the past year, a fresh crop of new niche ETFs have come to market, including some recent introductions such as the PureFunds Video Game Tech ETF (NYSEArca: GAMR). Yes, you would be correct in assuming that the PureFunds Video Game Tech ETF is the first ETF dedicated to the video game industry.
GAMR “follows the EE Fund Video Game Tech Index (GMB), “which tracks thirty-six exchange-listed companies across the globe actively engaged in supporting or utilizing the video gaming industry,” according to a statement from PureFunds.
ETFs in GAMR’s ilk are bound to draw critics, but investors looking for tactical position may not want to be hasty in dismissing the video game ETF.
“Among the ETF’s holdings are 4.4 percent in San-Francisco-based Glu Mobile Inc., which develops and publishes mobile games on a global basis (including “Kim Kardashian Hollywood”), and 2.3 percent in China-based Changyou.com Ltd., which develops multi-player online computer games. Konami Holdings Corp., a Japanese video game maker responsible for “Dance Dance Revolution,” gets a 5.5 percent weighting. GAMR has 5 times more exposure to all of these companies than any other ETF,” reports Eric Balchunas for Bloomberg.