Videogame ETFs Surge Amid Coronavirus Crisis

(Video length 00:10:44)

Due to the coronavirus pandemic, all sporting events have been canceled. As a result, many consumers who loved watching football, hockey, and other sports in stadiums, are now entertaining themselves by playing video games or watching esports online.

While video gaming & esports stocks and ETFs got a big boost from the crisis, these products were doing well even before COVID related shutdowns. The industry has been rising fast over the last few years.

The four ETFs in the space take very different approaches in selecting their holdings and weighting them. The VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) and the Global X Video Games & Esports ETF (HERO - Free Report) aim to provide more “pure-play” exposure by including companies that generate at least half of their revenues from relevant industries. Nvidia (NVDA - Free Report) is a top holding in both these funds.

The Wedbush ETFMG Video Game Tech ETF (GAMR - Free Report) holds game developers, console and chip makers, and game retailers. Tech giants Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) are among its holdings. The Roundhill BITKRAFT Esports Digital Entertainment ETF (NERD - Free Report) focuses on esports.

Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.