Audio length: 00:12:58

In this episode of ETF Spotlight, I talked with Ted Pollak, President, EE Fund Management.Ted co-founded the ETFMG Video Game Tech ETF (GAMR - Free Report) .

GAMR is the world’s first ETF focused on the video game industry. First off, we discussed why Ted decided to create the EEFund Video Game Tech Index.

The ETF has done quite well—it’s up about 21% over the past year—as game makers continue to report excellent profits and their stocks continue to rise. The industry now generates more than $100 billion of revenue annually.

Ted believes that these growth trends can continue.

In addition to game makers, the index also holds console and chip manufacturers and game retailers. So, we see gaming stocks like Electronic Arts (EA - Free Report) ,Take-Two Interactive (TTWO - Free Report) and Activision (ATVI - Free Report) , as well as video game retailers like GameStop (GME - Free Report) , among other holdings.

Ted explained how constituents are selected and weighted in the index.

Many market analysts are very bullish on eSports growth prospects. We discussed how GAMR is poised to benefit.

Ted then talked about his key takeaways from video gaming industry’s biggest annual event— the Electronic Entertainment Expo E3—which was held in n Los Angeles recently.  

Finally, Ted highlighted some long-term trends for the industry, including how virtual and augmented reality will drive growth.