Ready, set, invest: The opportunity in video gaming
Expanding on the theme of technology, VanEck believes video gaming is the latest thematic to outperform, boosted by the use of artificial intelligence.
The firm’s VanEck Video Gaming and eSports ETF was launched in September 2020 and currently has $62 million in assets under management.
VanEck said the number of video game players is estimated to rise from 2.77 billion in 2024 to 2.86 billion next year, demonstrating a huge addressable marketplace for their stocks.
The benefit of a video gaming vehicle, it said, is the dynamic growth opportunity, targeted exposure and technology diversification.
Its holdings are broken down into three sectors: chipmakers, publishers and developers, and internet platforms. This includes holdings such as Tencent, Roblox, Ubisoft and Advanced Micro Devices.
Alice Shen, portfolio manager at VanEck, said: “The video gaming industry represents a long-term structural growth story, and it is supported by broader trends such as demographic shifts, changes to consumer preferences and the widening of monetisation avenues through subscription and free-to-play models.
“AI plays a crucial role in shaping the future of the video gaming industry by enabling developers to create more immersive, dynamic and personalised gaming experiences for a global market of nearly 3 billion gamers.
“At the same time, the video gaming industry is earning billions in annual revenue, supported by long-term trends that boost its attractiveness, such as demographic shifts and changing consumer demands.”
The VanEck Video Gaming and eSports ETF has returned 5.6 per cent since inception versus 6.2 per cent by its MVIS Global Video Gaming and eSports Index.
AUTHOR
Laura Dew
Recommended for you
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
Regal Partners has passed $20 billion in funds under management, helped by $723 million in net inflows during the last three months.
Global investment manager Fidante has formed a strategic partnership with a London-based asset manager to secure exclusive distribution rights across the APAC region.
Blackwattle Investment Partners has hired a management trio from First Sentier Investors – who departed amid the closure of four investment teams last year – to run its first equity income offering.
