Game development

Bet on these video game ETFs to profit from the surge in sales

The video game industry continues to thrive amid the current health crisis. For nine months, total consumer spending on games increased 12% year-over-year to $ 42.28 billion. It is impressive to observe that the video game industry is experiencing strong sales growth despite difficult year-to-year comparisons, highlighting the strength of the space.

Video game sales continue to increase

Data recently released by The NPD Group highlights that the video game industry, including packaged media, digital, consoles and accessories, saw strong sales in September, with people spending $ 4.36 billion in the industry. total, which represents a growth of 3% year over year.

Hardware spending jumped 49% in September to $ 412 million, driven by wider distribution of next-gen consoles from Microsoft and Sony, according to the same NPD Group report. Spending on consoles has jumped 49% year over year to $ 3.41 billion year-to-date. After dominating the rankings for 33 months in unit sales, Nintendo’s NTDOY Switch was behind Sony’s Sony PlayStation 5, which topped the rankings in terms of dollar sales and unit sales in September.

In this regard, Mat Piscatella, executive director of games at NPD, said that “33 consecutive months for Switch have been remarkable. And this month we had a significant influx of new PlayStation 5 inventory paired with a Switch assortment that was in the process of transitioning to focus more on the OLED model, ”according to a GameDaily article.

Spending on content comprising full physical and digital games, DLC / MTX consoles, cloud, mobile, portable, PC and VR platforms remained stable at $ 3.78 billion year-over-year. Year-to-date sales have increased 10% to $ 37.11 billion.

Titles like Madden NFL 22, FIFA 22, NBA 2K22, Tales of Arise and Diablo II: Risen were among the top five sales in September.

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.

Remaining optimistic about the outlook for the market, Mat Piscatella said that “huge opportunities continue to exist for companies that can bring games, hardware and accessories to the market in the short term. I am becoming more optimistic about consumer demand for the fourth quarter, and there are at least some signs that supply may start to increase to help meet it. We’ll see. ”This was mentioned in a GameDaily article.

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 37 shares in his basket. With $ 72.8 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 $ 655.2 million in assets under management, 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 $ 506.7 million AUM, the fund charges 50 basis points as an expense ratio (read: Investing in thematic 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 116 shares in his basket. With $ 107.3 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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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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