Gaming ETFs will continue to shine despite rising sales


The video game industry continues to surprise investors with continued strength in sales amid the current health crisis. Total consumer spending on games for eight months rose 13% year on year to $ 37.9 billion, according to the NPD Group report. What impresses most is that the video game industry is showing robust growth despite difficult year-to-year comparisons, underscoring the true strength of the space.

Video game sales continue to soar

Data recently released by The NPD Group highlights that the video game industry, including packaged media, digital, consoles and accessories, saw strong sales in August, with people spending $ 4.37 billion on the market. total, reflecting 7% year-over-year growth.

Hardware spending jumped 45% in August to $ 329 million, driven by a wider distribution of next-gen consoles from Microsoft MSFT and Sony, according to the same report from the NPD Group. Spending on consoles has jumped 49% year over year to $ 3 billion year-to-date. Nintendo’s NTDOY Switch continues to be the best-selling console in terms of units sold in August and year-to-date, according to a GameDaily article. Meanwhile, Sony’s Sony PlayStation 5 dominates the charts in terms of dollar sales in both periods.

Spending on content comprising full physical and digital games, DLC / MTX console, cloud, mobile, portable, PC and VR platforms increased 5% year-on-year to $ 3.88 billion. Year-to-date sales have increased 11% to $ 33.33 billion. Meanwhile, spending on accessories was flat in August at $ 164 million, according to the same report from the NPD Group. In addition, accessories sales rose 12% to $ 1.59 billion in the cumulative period of the year.

Titles like Madden NFL 22, Ghost of Tsushima, Call of Duty: Black Ops: Cold War, Humankind and Marvel’s Spider-Man: Miles Morales were among the top five best sellers in August.

Game developers continue to innovate and attract users every day and keep the old ones. They increase the engagement of existing players by providing new titles, levels, arenas or environments as the games require at regular intervals. Mergers and acquisitions continue to support the gaming space.

Video game ETFs to keep winning

It looks like the boom in the video game space may endure even in the post-pandemic era, as the epidemic has significantly altered the lifestyles and preferences of American citizens. Against this background, investors can take a look at the following video game ETFs:

ETF Roundhill BITKRAFT Esports and Digital Entertainment NERD

The fund is designed to provide investors with exposure to esports and digital entertainment by providing investment results that closely match, before fees and expenses, the performance of the Roundhill BITKRAFT Esports Index. He has 35 shares in his basket. With $ 77.6 million AUM, the fund charges 50 basis points (bps) as an expense ratio (read: gaming ETFs to win after Apple-Epic Games decision).

VanEck Video Games and Esports ETF ESPO

The fund aims to replicate as closely as possible, before fees and expenses, the price and return performance of the MVIS Global Video Gaming and eSports Index, which is intended to track the overall performance of companies involved in the development of video games. , esports, and hardware and software. He has 26 shares in his basket. With $ 703.7 million AUM, the fund charges 55 basis points as an expense ratio (read: Sports betting ETFs set to soar on NFL betting).

Global X ETF on Video Games and Electronic Sports HERO

The fund seeks to invest in companies that develop or publish video games, facilitate the broadcast and distribution of video game or esports content, own and operate in competitive esports leagues, or produce equipment used in games or esports. video games and esports, including augmented and virtual reality. He has 40 shares in his basket. With $ 551 million AUM, the fund charges 50 basis points as an expense ratio (read: Thematic investing in ETFs: what you need to know).

ETF Wedbush ETFMG Video Game Technology GAMR

The fund provides pure and diversified exposure to a dynamic intersection of technology and entertainment. It also generally matches the price and yield performance of the EEfund Video Game Tech Index. The index is designed to reflect the performance of companies involved in the video game technology industry, including game developers, console and chip makers, and game retailers. He has 135 shares in his basket. With $ 107.4 million AUM, the fund charges an expense ratio of 75 basis points (read: 5 bargain ETFs to harness renewed tech strength).

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Microsoft Corporation (MSFT): Free Stock Analysis Report

Global X Video Games & Esports ETF (HERO): ETF Research Reports

Nintendo Co. (NTDOY): Free Stock Analysis Report

Wedbush ETFMG Video Game Tech ETF (GAMR): ETF Research Reports

VanEck Video Gaming and eSports ETF (ESPO): ETF Research Reports

ETF Roundhill BITKRAFT Esports and Digital Entertainment (NERD): ETF Research Reports

Sony Corporation (SONY): Free Stock Analysis Report

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