VanEck launches eSports ETF
VanEck has announced the launch of its new video gaming and eSports exchange traded fund (ETF) which will offer investors exposure to the video games and eSports industry, an exponentially-growing industry as lockdown measures force people to turn to digital entertainment, the firm said.
The new ETF (ESPO), which was at final stages of approval and would commence trading on the Australian Securities Exchange (ASX) in coming weeks, would focus on investing in the largest pure-play video gaming and eSports companies globally by investing only in companies that generate at least 50% of their revenues from video gaming and/or eSports.
Holdings would include game publishers Tencent, Nintendo, Electronic Arts and Activision Blizzard, which have the potential to continue to grow their revenues at strong rates while the fund would also invest in related software developers, streaming services, and companies involved in eSports events.
“With the coronavirus pandemic sweeping the globe and people confined to their homes in many nations now and into the foreseeable future, eSports and interactive video gaming will become an increasingly important form of entertainment,” Arian Neiron, VanEck's managing director and head of Asia Pacific, said.
“The eSports and video gaming industry is growing at a breakneck pace, and is already bigger than the cybersecurity industry and robotics industry. Since 2015, video game revenues have seen an annualised growth rate of 13% and it has been estimated that by 2023, video game revenues should hit US$200 billion.”
VanEck defined eSports as a form of competitive video gaming, commonly held as organised, multiplayer spectator events, often between professional players.
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