Another Video Game ETF is Coming | ETF Trends

Another exchange traded fund with exposure to the video game and e-sports themes is coming. This time, an existing ETF is converting a video game fund. The Defiance Future Tech ETF (NYSE: AUGR) will become the Defiance Next Gen Video Gaming ETF (VIDG) on June 24.

In its current form, AUGR is designed for investors seeking to capitalize on the growing opportunities in augmented reality and virtual reality (AR/VR) technology—a disruptive technological advancement, which is already impacting a wide range of industries.

Augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth. In fact, industries like real estate and manufacturing are already putting the technology to use in a variety of ways. AUGR debuted last July and has $3.42 million in assets under management.

“Augmented and virtual reality is a disruptive technology that we continue to believe in, but we feel investors will be better served by a fund that focuses on one of the key areas where this technology may have significant current impacts, which is why we’re magnifying the focus of the fund to hone in on the video game space,” said Paul Dellaquila, Global Head of ETFs at Defiance, in a statement.

Viewing VIDG ETF

The new VIDG will track the Bluestar Next Gen Video Gaming Index. VIDG’s annual fee will be 0.30%, or $30 on a $10,000 investment, down from the 0.40% per year charged by AUGR.

The other Defiance ETFs, the Defiance Quantum ETF (NYSEArca: QTUM) and the 5G ETF (FIVG), also track Bluestar indexes.

While growth estimates for e-sports are garnering plenty of attention, the global video game market is expected to expand at a rapid rate as well.

“The video games market will more than double to become a $300 bllion-plus industry by 2025, according to GlobalData, a leading data and analytics company. According to the company’s latest thematic report, ‘Video Games’, the market will grow from $131 billion in 2018 to $305 billion in 2025, at a compound annual growth rate (CAGR) of 13%.”

For more ETF launches, visit the New ETFs category.