Back to top

Image: Bigstock

5 ETFs Set to Gain From March Madness Betting

Read MoreHide Full Article

The 2022 National Collegiate Athletic Association (“NCAA”) Division I Men's Basketball Tournament kicked off last week, spreading “March Madness” to millions of Americans. This is especially true, as the annual event will lead to crazy legal sports betting, pushing up the stocks in this sector higher.

Investors should tap the three-week sports betting extravaganza with VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) , Global X Video Games & Esports ETF (HERO - Free Report) , Roundhill Sports Betting & iGaming ETF (BETZ - Free Report) , VanEck Vectors Gaming ETF (BJK - Free Report) and Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD - Free Report) .

With the increased legalization of online sports betting, this year’s tournament will be the most wagered-on sporting event in history. The legalization of sports betting across the United States has increased significantly from 2019, with online gambling now legal in 30 states and Washington, DC.

According to the American Gaming Association, about 45 million people are expected to wager a total of $3.1 billion on the men's tournament alone. More than 20.9 million people expect to bet on the tournament outside of bracket contests at a retail sportsbook, online, with a bookie or casually with friends.
Another 36.5 million will wager via a bracket contest or similar pool (read: Online Spending to Hit Record in 2022: 5 ETFs to Surge).

We have highlighted the details of the above-mentioned ETFs:

VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
 
VanEck Video Gaming and eSports ETF offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO holds 25 stocks in its basket with a moderate concentration on the top firms. VanEck Video Gaming and eSports ETF is tilted toward American firms, which account for 42.7% of the portfolio, while Japan and China round off the next two with double-digit allocations each.

VanEck Video Gaming and eSports ETF has gathered $428.4 million in its asset base while trading in an average daily volume of 84,000 shares. ESPO charges 55 basis points (bps) in annual fees from investors.

Global X Video Games & Esports ETF (HERO - Free Report)

Global X Video Games & Esports ETF offers exposure to companies that develop or publish video games, facilitate 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. This can be easily done by the Solactive Video Games & Esports Index.

Holding 49 securities in its basket, Global X Video Games & Esports ETF has AUM of $307.7 million and charges 50 bps in annual fees. It trades in an average daily volume of 132,000 shares.

Roundhill Sports Betting & iGaming ETF (BETZ - Free Report)

Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors global exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. Sportsbook comprises 27.4% share while technology, iGaming and casino round off the next two spots with a double-digit exposure each (read: Tech Tops Last Week: 5 Best Leveraged ETFs).

Roundhill Sports Betting & iGaming ETF holds 44 stocks in its basket and has amassed $212.5 million in its assets base. It charges 75 bps in annual fees and trades in an average daily volume of 128,000 shares.

VanEck Vectors Gaming ETF (BJK - Free Report)

VanEck Vectors Gaming ETF provides investors with exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. It follows the MVIS Global Gaming Index, holding 38 securities in its basket.

VanEck Vectors Gaming ETF has AUM of $87.9 million and an average daily volume of roughly 22,000 shares. It charges 62 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD - Free Report)

Roundhill BITKRAFT Esports & Digital Entertainment ETF offers retail and institutional investors exposure to 34 esports & digital entertainment stocks. It follows the Roundhill BITKRAFT Esports Index, charging investors 50 bps in annual fees. From a country exposure, the United States and China take the largest share at 26.8% and 18.8%, respectively, while Japan and South Korea round off the next two spots (read: Buffett's Interest in Activision: ETF Lessons to Follow).

Roundhill BITKRAFT Esports & Digital Entertainment ETF has accumulated $48.7 million in its asset base while trading in an average daily volume of 14,000 shares.