The Rise of E-Sports & ETFs

Company News | +61 2 9083 1333 | 2020.07.21

The world of competitive multiplayer gaming has seen exceptional growth since the early 2000s. eSports is now an essential part of mainstream media, backed by celebrities including Michael Jordan, Steph Curry and Drake, it’s even been considered for the Olympics, and is currently covered internationally by ESPN, NBC and FoxSports.

Global eSports revenue has increased 28% p.a since 2015 (VanEck), and viewership is anticipated to grow at a compound rate of 9% p.a until 2023 (Business Insider Intelligence Esports Report). With both anticipated developments in gaming technology and continually improving internet capabilities, the eSports industry is set up to evolve and flourish with its audience’s ever increasing demand.

e-SPORTS ETFs

 

Exciting new eSports ETFs have been developed to allow traders to harness this tremendous growth opportunity. ETFs offer a simple and cost effective way to gain exposure to this industry. Much the same as trading Single Stock CFDs, Invast Global offers liquidity for a wide range of ETF CFDs which your clients can both trade on a margin and short sell.

Source: https://www.visualcapitalist.com/esports-boom/

 

Invast Global CFD Liquidity

 

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VanEck Vectors Video Gaming and eSports ETF

 

Total Net Assets: $290.1m
Avg. Volumes: 129.59K
P/E Ratio: 28.65
YTD Return: +46.47%
No. of holdings: 25

The VanEck Vectors Video Gaming and eSports ETF closely tracks the performance of companies involved in the development of video games, eSports and related hardware. Robust against COVID-19 related set-backs due to the online nature of the industry and cancellation of most physical sports (ESPO out-performed the S&P during the pandemic).

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF

 

Total Net Assets: $25.8m
Avg. Volumes: 30.65K
P/E Ratio: 29.24
YTD Return: +43.60%
No. of holdings: 31

The Roundhill BITKRAFT Esports & Digital Entertainment ETF offers investors exposure to the growing market of eSports and related entertainment. This ETF has benefited hugely from the eSports phenomenon.

 

Global X Video Games & Esports ETF

 

Total Net Assets: $121.9m
Avg. Volumes: 117.91K
P/E Ratio: 28.61
YTD Return: +51.15%
No. of holdings: 40

The Global X Video Games & Esports ETF seeks to benefit over the increased consumption of video games and eSports. With the growth of eSports, video games are set to be more sought after than ever.

 

Roundhill Sports Betting & iGaming ETF

 

Total Net Assets: $86.8m
Avg. Volumes:
625.33K
P/E Ratio: 21.11
No. of holdings: 36

The Roundhill Sports Betting & iGaming ETF tracks the performance of the sports betting and iGaming industry. This includes companies that offer in-person/online sport books, companies that operate online gambling platforms and the companies that provide the infrastructure and technology to the industry.

 

VanEck Vectors Gaming ETF

 

Total Net Assets: $41.1m
Avg. Volumes: 35.69K
P/E Ratio: 28.65
No. of holdings: 43

The VanEck Vectors Gaming ETF tracks the overall performance of companies involved in sports betting, lottery services and casinos. This ETF has been impacted by the pandemic, however, will look to bounce back when restrictions ease. Keep an eye on this one.

 

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