Gaming has continually been a viable home activity, let alone the popularity of eSports, and with everyone at home, its value has only increased. VanEck has certainly taken note of this.
ETF Trends spoke with VanEck Global’s JP Lee, Product Manager, about the success of eSports in recent weeks, noting just how well this area has been holding up this year.
As noted in a recent VanEck blog post, “Video game and esports stocks are uniquely positioned to weather this economic recession in which the vast majority of the population is forced to stay inside for extended periods of time.”
While the market has been down 20-25% in the first quarter, the VanEck Vectors eSports and Video Game ETF(ESPO) was up a few percentage points. So, while there was an outperformance over 2019, even while leveling out, this is still in a better position than the market as a whole.
Gaming Bringing The World Together
Lee notes how the news has certainly made audiences aware of the increased amount of video game engagement across various gaming platforms, streaming services, and now eSports. Esports is particularly notable given how traditional sports have all been canceled. As a result, many athletes, as well as consumers, have transferred over to eSports.
The big example right now is NASCAR, as the drivers are having their races through the video games they are featured in. Utilizing controls designed to resemble the driver seats of their vehicles, the notable drivers can essentially still race against each other. All of that effort and excitement shared between these drivers is then broadcasted over on Fox.
These events have led to record-breaking ratings as far as viewership for these sorts of eSports events. So, there’s a lot of clear excitement in this space.
“We view it as an acceleration of trends that are already in place, not just a blip,” Lee states.
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