Gaming ETFs Sitting Pretty Amid Booming Sales

gaming etfs

Despite the continuing health crisis, the video game sector continues to excite investors with sizable sales growth. A new report shows that the video game sector continues to expand strongly, demonstrating a strong future ahead.

According to this report, the amount of money spent on video games over the last eight months rose 13% annually to $37.9 billion. Gamers spent $4.37 billion dollars on video games during August, up 7% from the year before. Distribution of new-generation consoles from Sony (NYSE: SONY) and Microsoft MSFT led to consumer spend on hardware growing by 43% in August to $329 million. Year-to-date console spending increased 49% to $3 billion. Nintendo Switch (NYSE: SWCH) was the best-selling system for August and the year as reported in a separate study. In both periods, Sony’s PlayStation 5 has maintained the upper hand in the dollar sales charts.

On a year-over-year basis, spend on content that comprises physical and digital complete game, DLC, and other platform add-ons including PlayStation Network, mobile, portable, PC, and virtual reality rose by 5% to $3.88 billion. Year-to-date revenues increased 11% to $33.33 billion. Accessory spending stayed flat throughout August at $164 million. For the year-to-date quarter, accessory sales rose by 12% to $1.59 billion.

Other than sports games like Madden NFL 22, the best-selling games in August included Call of Duty: Black Ops: Cold War, Ghost of Tsushima, Marvel’s Spider-Man: Miles Morales, and Humankind.

Every day, game creators are coming up with fresh ways to capture a new audience and keep existing users engaged. New features, stages, arenas, or settings are added at regular intervals to encourage player involvement and increase loyalty. The gaming sector continues to thrive as a result of frequent mergers and acquisitions.

The post-pandemic period may result in even greater growth in the video game industry since the habits and tastes of Americans have been altered significantly in the last few months. Video game investing comes into greater focus in the context of these developments. The following gaming ETFs are therefore worth keeping an eye on:

VanEck Video Gaming and eSports ETF – ESPO

The gaming ETF seeks to emulate as precisely as possible the performance of the MVIS Global Video Gaming and eSports Index, which is a composite index intended to follow the overall performance of the video game development, esports, and related hardware and software firms. The basket contains 26 different equities. With a total AUM of $703.7 million, the fund has an expense ratio of 55 basis points.

Wedbush ETFMG Video Game Tech ETF – GAMR

This fund serves as a purely diversified investment vehicle for those interested in investing in dynamic combinations of technology and entertainment. It represents the relationship between price and yield performance of the Electronic Entertainment Funds Video Game Technology index. This index, which is made up of game creators, console and chip makers, and game retailers, was created to represent the overall success of the video game technology sector. The basket contains 135 stocks. AUM of $107.4 million means that the fund has an expense ratio of 75 bps.

The Roundhill BITKRAFT Esports & Digital Entertainment ETF – NERD

The gaming ETF is intended to give investors a new way to participate in and benefit from the rapidly growing esports and digital entertainment sector by offering trading outcomes that closely mirror the Roundhill BITKRAFT Esports Index, prior to fees & expenses. The fund holds 35 stocks. In fund terms, the expense ratio is set at 50 bps, while AUM is $77.6 million.

Global X Video Games & Esports ETF – HERO

The fund is focused on investing in businesses that design or create video games, distribute or broadcast gaming or esports content, own and manage esports leagues or manufacture the supporting hardware. Its basket stores 40 stocks. AUM of $551 million results in a cost of 50 basis points. The fund has AUM of $551 million, and has an expense ratio of 50 bps.

$551 million, and has an expense ratio of 50 bps.

Those were some gaming ETFs that are likely to shine bright amid soaring sales in the gaming sector. To read more informative articles, visit our blog. Don’t forget to check out useful video content by subscribing to our Youtube channel.


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