“Continued strength in games like Grand Theft Auto V, Grand Theft Auto Online, NBA 2K17 & 2K18, Monster Legends and XCOM 2 is the major reason for the outperformance and their demand will continue in the holiday season. The industry will continue to see upsides in consumer reception,” explains NASDAQ.
GAMR follows the EEFund Video Game Tech Index, which tracks the performance of companies across the video gaming space. The ETF contains holdings from across the globe but with a focus on companies in the United States and in Asian countries; this includes 35% in the U.S., 31% in Japan, 9% in Korea, and 7% in China.
Related: A Look at the First ETF Dedicated to Video Game Industry
Asian countries are playing a strong role in the development of the industry. For example, “in 2015, China made the decision to end its ban on video game consoles and hasn’t looked back since. In 2014, game revenues in China stood at $18 billion, second only to US revenues coming in at $21.3 billion. By 2018, however, Chinese revenues are expected to almost double to $32.8 billion, compared to $24.0 billion in the US. Furthermore, a burgeoning eSports market is thriving. Year-over-year revenue growth in 2017 is expected to be 41.3% and rise to $696 million. By 2020, this figure is anticipated to rise to approximately $1.5 billion,” says Seeking Alpha.
“The video game industry has a firm foundation and is rapidly growing. The rise of eSports will continue to popularize the industry and expansion into new technologies will continue to drive growth”
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