The VanEck Vectors Gaming ETF (NYSEArca: BJK), the only ETF dedicated to gambling and casino stocks, is up an impressive 26.1% year-to-date.
Favorable seasonal trends indicate BJK and some of the ETF’s marquee holdings could see more upside in the fourth quarter.
BJK follows the MVIS Global Gaming Index, “which is intended to track the overall performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment,” according to VanEck.
“According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, BJK has been one of the best-performing ETFs in October, looking back over the past 10 years’ worth of data,” according to Schaeffer’s Investment Research. “Specifically, the shares have averaged a monthly return of 2.35%, and have been positive 67% of the time since they began trading in 2008. Based on the fund’s current perch, a move of this magnitude would put the shares near $43.10 for the first time since December 2014.”
Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are dominant names in Las Vegas but the companies, two marquee holdings in BJK, are also big players in Macau, levering each to Chinese gambling trends. Those two stocks are top 10 holdings in BJK, combining for 12.5% of the ETF’s roster.