Video Gaming and eSports ETF Crosses $1 Billion in Assets

2020 hasn’t been the year of fun and games, but try and tell that to the VanEck Vectors Video Gaming and eSports ETF (NasdaqGM: ESPO), which crossed $1 billion in assets recently. Amid social distancing measures thanks to the pandemic, video gaming has come to the forefront even more as a past time whether it’s for recreational purposes or professional competition.

ESPO tracks the performance of the global video gaming and eSports (also known as electronic sports) segment. Per a recent press release, the fund’s assets “represent the collective total in the VanEck Vectors Video Gaming and eSports ETF (Nasdaq: ESPO), the first pure-play ETF of its kind, launched in 2018, and the European version of the strategy, the VanEck VectorsTM Video Gaming and eSports UCITS ETF which launched in 2019. The relatively new strategy has reached this significant asset threshold in under three years of trading, a testament to the popularity of the space and the targeted exposure offered by these vehicles.”

“Consumer preferences are evolving towards online and digital streaming entertainment,” said Ed Lopez, Managing Director, Head of ETF Product at VanEck. “While we couldn’t have anticipated the stay-at-home mandates of 2020, we believe the pandemic has accelerated a number of long-term trends, as evidenced by the video gaming industry hitting $159 billion in projected revenues for 2020.1

“We’ve seen great adoption and interest from both individuals and financial professionals in Europe, demonstrating recognition of video gaming and esports as a big and growing business and its global appeal,” added Martijn Rozemuller, Managing Director, Head of Europe at VanEck.

A couple more ETFs in the space to consider:

  • VanEck Vectors Gaming ETF (NasdaqGM: BJK): BJK is runner up in terms of size with over $27 million in assets. The fund seeks to replicate as closely as possible the price and yield performance of the MVIS® Global Gaming Index. For index eligibility, companies must generate at least 50% of their revenues from gaming. Gaming includes casinos and casino hotels, sports betting (including internet gambling and racetracks) and lottery services as well as gaming services, gaming technology and gaming equipment.
  • Roundhill BITKRAFT Esports & Digital Entertainment ETF (NYSEArca: NERD): NERD doesn’t have the asset size of the first two funds, but it’s still worth a look given its current price of $15.74 as of Dec. 18. It seeks to track the total return performance of the Roundhill BITKRAFT Esports Index, which tracks the performance of the common stock of exchange-listed companies across the globe that earn revenue from electronic sports, or esports related business activities.

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