Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD - Free Report) topped the list of the best-performing ETFs in June with impressive returns of 15.3%.
The number of new coronavirus cases has increased in some U.S. states after reopening commenced. This has bolstered the appeal for online entertainment and esports, leading to a surge in the stock price of the firms offering these services (read: Esports & Gaming Industry on a Tear: ETFs to Bet On).
Per the NewZoo latest report, the global esports industry is expected to have a banner year in 2020, generating $1.1 billion in revenues with year-over-year growth of 15.7%. Most of these revenues (74.8%) will come from sponsorships and media rights, a 17.2% increase from last year. About $121.7 million will come from consumer spending on tickets and merchandise while another $116.3 million will come from game publishers’ investments in the esports space, via supporting tournaments through partnerships or as white-label projects with professional tournament organizers. Additionally, the global esports audience will likely reach 495.0 million this year, comprising 222.9 million Esports Enthusiasts and a further 272.2 million Occasional Viewers.
Let’s take a closer look at the fundamentals of NERD.
NERD in Focus
This fund offers retail and institutional investors exposure to esports & digital entertainment by tracking the Roundhill BITKRAFT Esports Index. The index consists of a modified equal-weighted portfolio of globally listed companies actively involved in the competitive video gaming industry. Holding 31 stocks in its basket, the ETF is well spread across them with none making up for more than 6.5% of assets. From a country exposure, China and the United States take the largest share at 24.4% and 13.3%, respectively, while Japan, Singapore, Taiwan and South Korea round off the next four spots (read: 5 Sector ETFs That Beat the Market in June).
NERD has accumulated $25.7 million in its asset base while trading in average daily volume of nearly 21,000 shares. It charges 25 bps in annual fees and expenses.
Though most of the stocks in the fund’s portfolio delivered strong returns, we have highlighted five best-performing stocks in the ETF that led the way along with their respective positions in the basket:
Best-Performing Stocks of NERD
Bilibili Inc. Sponsored ADR (BILI - Free Report) : The company provides an online entertainment platform primarily in China. The stock has witnessed negative earnings estimate revision of 4 cents over the past 30 days for this year and its earnings are expected to decline 72.3%. It skyrocketed 36% in June and has a Zacks Rank #4 (Sell) and Growth Score of A. The stock holds the ninth spot in the fund’s basket with 4.2% of the total assets.
Turtle Beach Corporation (HEAR - Free Report) : This is an audio technology company that designs audio products for consumer, commercial and healthcare markets. The company has seen positive earnings estimate revision of 55 cents over the past 30 days for this year. Its earnings are expected to decline 46.1%. The stock has a Zacks Rank #1 (Strong Buy) and Value Score of A. It makes up for 4.1% share and has soared 29.6% last month. You can see the complete list of today’s Zacks #1 Rank stocks here.
JOYY Inc. (YY - Free Report) : It operates a social media platform in the People's Republic of China and internationally. The stock surged about 27.3% last month and accounts for 2.4% of assets in the basket. The stock has seen positive earnings estimate of 20 cents in a month for this year and has expected negative growth of 10.5%. It has a Zacks Rank #3 (Hold) and Momentum Score of A.
Sea Limited Sponsored ADR (SE - Free Report) : This is an Internet service provider company that offers Digital Entertainment, E-Commerce and Digital Financial Services known as Garena, Shopee and AirPay. It has jumped around 25% and occupies the twelfth spot in the fund’s portfolio, making up for 4% share. The stock has witnessed negative earnings estimate revision of 4 cents and its earnings are expected to decline 15%. It carries a Zacks Rank #3 (read: 5 Niche Tech ETFs That Have Gained More Than 30% in 1H).
HUYA Inc. Sponsored ADR (HUYA - Free Report) : This company provides online services that offers interactive video broadcast services, which include esports, music, reality show and more. The stock takes the fifth rank in the fund’s basket with 5.6% allocation. It delivered robust returns of 12.6% in June. The stock saw no earnings estimate revision in a month for this year and has an estimated earnings growth of 52.2%. It carries a Zacks Rank #4 and Momentum Score of A.
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 >>