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Video Gaming ETFs to Keep Soaring Amid Coronavirus Crisis
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The coronavirus outbreak continues to buoy the video games industry. According to a NPD Group report, the industry, including hardware, software, accessories and game cards, saw a 26% year-over-year rise in consumer spending to $1.2 billion in June (highest tracked spending for the month of June since 2009) per a GameDaily article. In this regard, Mat Piscatella, executive director of games at NPD, has said that, “content and accessories sales continue to show particular strength, with the former hitting levels not seen in a decade, and the latter setting all-time highs in June,” per a GameDaily article.
Going on, sales in the video gaming industry, including hardware, software, and accessories, reached the highest level since hitting $7 billion in 2010 for the first six months of the year, per an article on The Verge. Sales in the video game industry through June 2020 in the United States came in at $6.6 billion, up 19% year over year.
Coronavirus Drives Sales
People are increasingly resorting to video games in the United States amid quarantine. Moreover, coronavirus has resulted in drastic changes in lifestyle and preferences of people. Even with some states reopening and easing social-distancing norms, people have been trying to minimize human-to-human contact. In fact, going by the 2020 Gamer Segmentation Report, the latest study from The NPD Group, 244 million people or say almost three out of every four persons in the United States play video games.
Since 2018, there has been an increase of 32 million people among the video gaming population (per the same report). Also, a rise in multi-device usage has been witnessed with around 65% of people using more than one device as against 59% in 2018.
Highlighting how the coronavirus outbreak has lent support to the video gaming industry the report further states that, 35% of the gaming population agrees on spending more time on video games in comparison to the pre-pandemic era.
The NPD Group report further states that The Last of Us Part II has stood out as the best-selling game. The game also gained the status of the third best-selling game of 2020 and the eighth best-selling game in the past year. Staying at the third position in June, Nintendo’s (NTDOY - Free Report) Animal Crossing: New Horizons continued to deliver strong performance.
Video Game ETFs to Keep Shining
It seems that the second half of 2020 will continue to bear the brunt of the coronavirus outbreak as it continues to gather steam. Against this backdrop, investors can take a look at the following video gaming ETFs:
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Video Gaming and eSports Index, which is intended to track the overall performance of companies involved in video game development, esports, and related hardware and software. It holds 25 stocks in its basket. Top gaming companies like Nintendo and Activision Blizzard have spots in the first ten holdings. With AUM of $349.1 million, the fund charges 55 basis points in expense ratio (read: Nvidia Tops Intel by Market Cap: ETFs to Buy).
The fund seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video gaming or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality. It holds 40 stocks in its basket. Big gaming companies like Nintendo, Activision Blizzard and Zynga are in the top ten holdings. With AUM of $149.3 million, the fund charges 50 basis points in expense ratio (read: 5 ETF Areas Hitting Highs on Resurging Coronavirus Cases).
The fund provides pure-play and diversified exposure to a dynamic intersection of technology and entertainment. It also corresponds generally to 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 manufacturers and game retailers. It holds 88 stocks in its basket. With AUM of $107.4 million, the fund charges 75 basis points in expense ratio (read: ETFs to Play New Trends Triggered by COVID-19).
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Video Gaming ETFs to Keep Soaring Amid Coronavirus Crisis
The coronavirus outbreak continues to buoy the video games industry. According to a NPD Group report, the industry, including hardware, software, accessories and game cards, saw a 26% year-over-year rise in consumer spending to $1.2 billion in June (highest tracked spending for the month of June since 2009) per a GameDaily article. In this regard, Mat Piscatella, executive director of games at NPD, has said that, “content and accessories sales continue to show particular strength, with the former hitting levels not seen in a decade, and the latter setting all-time highs in June,” per a GameDaily article.
Going on, sales in the video gaming industry, including hardware, software, and accessories, reached the highest level since hitting $7 billion in 2010 for the first six months of the year, per an article on The Verge. Sales in the video game industry through June 2020 in the United States came in at $6.6 billion, up 19% year over year.
Coronavirus Drives Sales
People are increasingly resorting to video games in the United States amid quarantine. Moreover, coronavirus has resulted in drastic changes in lifestyle and preferences of people. Even with some states reopening and easing social-distancing norms, people have been trying to minimize human-to-human contact. In fact, going by the 2020 Gamer Segmentation Report, the latest study from The NPD Group, 244 million people or say almost three out of every four persons in the United States play video games.
Since 2018, there has been an increase of 32 million people among the video gaming population (per the same report). Also, a rise in multi-device usage has been witnessed with around 65% of people using more than one device as against 59% in 2018.
Highlighting how the coronavirus outbreak has lent support to the video gaming industry the report further states that, 35% of the gaming population agrees on spending more time on video games in comparison to the pre-pandemic era.
The NPD Group report further states that The Last of Us Part II has stood out as the best-selling game. The game also gained the status of the third best-selling game of 2020 and the eighth best-selling game in the past year. Staying at the third position in June, Nintendo’s (NTDOY - Free Report) Animal Crossing: New Horizons continued to deliver strong performance.
Video Game ETFs to Keep Shining
It seems that the second half of 2020 will continue to bear the brunt of the coronavirus outbreak as it continues to gather steam. Against this backdrop, investors can take a look at the following video gaming ETFs:
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Video Gaming and eSports Index, which is intended to track the overall performance of companies involved in video game development, esports, and related hardware and software. It holds 25 stocks in its basket. Top gaming companies like Nintendo and Activision Blizzard have spots in the first ten holdings. With AUM of $349.1 million, the fund charges 55 basis points in expense ratio (read: Nvidia Tops Intel by Market Cap: ETFs to Buy).
Global X Video Games & Esports ETF (HERO - Free Report)
The fund seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video gaming or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality. It holds 40 stocks in its basket. Big gaming companies like Nintendo, Activision Blizzard and Zynga are in the top ten holdings. With AUM of $149.3 million, the fund charges 50 basis points in expense ratio (read: 5 ETF Areas Hitting Highs on Resurging Coronavirus Cases).
Wedbush ETFMG Video Game Tech ETF (GAMR - Free Report)
The fund provides pure-play and diversified exposure to a dynamic intersection of technology and entertainment. It also corresponds generally to 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 manufacturers and game retailers. It holds 88 stocks in its basket. With AUM of $107.4 million, the fund charges 75 basis points in expense ratio (read: ETFs to Play New Trends Triggered by COVID-19).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>