The ETFMG Video Game Tech ETF (NYSEArca: GAMR), the world’s first ETF focused on the video game industry, is up 54.3% year-to-date as the industry reaches unprecedented levels.
GAMR tracks companies across the video gaming industry, such as game retailers, game developers, and console and chip manufacturers.
“The video game industry has seen explosive growth over the course of the past several years, with worldwide revenue reaching a staggering $91 billion in 2016. Of this amount, mobile gaming is the largest segment, responsible for approximately $41 billion in revenue alone. These numbers greatly exceed estimates by companies such as PwC that global video game revenue would top $90 billion for the first time in 2020,” reports Seeking Alpha.
New technologies, such as virtual and augmented reality, have enhanced gaming experiences and contributed to this recent growth. In addition, the video gaming world has seen the rise in a modern video gaming sport called eSports, where thousands of people gather across the world to watch professional video gamers battle it out.
“Professional gaming competitions are bigger than ever. The world’s top players frequently duel it out in front of massive online audiences for millions of dollars in cash prizes,” says ZACKS Investment Research.
In addition to the growth of the industry, GAMR has become increasingly popular due to new game releases before the holiday season.