FINSUM + Magnifi: Video Games and Streaming Unite in New ETF
(March 2021)
A new ETF tapping into dual online crazes has been filed for the First Trust S-Network Streaming and Gaming ETF. The ETF will focus on platforms that allow gamers and creators to stream content, E-Sports, and internet gambling enabled platforms. The ETF will generally track the price and yield of the S-Network Global Streaming and Gaming Index. The pandemic has breathed extra life into an already growing industry, as video game sales were up 35% year over year. Streaming is on pace to be a $247.27 billion industry by 2027. Other competitors in this market segment are the Esports ETF (NERD), Global X Video Games and & Esports ETF (HERO), and VanEck Vectors Video Gaming and eSports ETF (ESPO).
Read more
FINSUM + Magnifi: Why eSports and Gambling are a Great Buy Right Now
(March 2021)
Investors have had to recalibrate over the last couple of weeks as Reddit users and memes positioned themselves as players on the real-world financial stage. Related byproducts to the internet culture are growth in online gambling and Esports. In a tweet this week, the Citron research group suggested GameStop should purchase the Esports betting company Esports Entertainment Group Inc. (GMBL). Citron, which had been an advocate of short-selling GME early has switched its position and now thinks that the marriage of these two companies could provide investors a new opportunity. GMBL was up 18.9% after the tweet. Citron has placed a price target of $50 on GMBL and believes this acquisition is the hybrid play to turn GameStop into a one-stop-shop for all things video gaming. GME is in another frenzy of its own rallied on open Thursday despite the S&P 500 slipping yet again.
Read more
FINSUM + Magnifi: Why eSports ETFs May Be a Good Buy
(February 2021)
Thematic ETFs have been one of the market’s bright spots over the last couple of years. For evidence of this, look no further than ARK etfs, who has seen their AUM rise 1000% on huge inflows driven by the success of the holdings in their ETFs. So what might be the next big area? ESports is a good place to take a look. While the average advisor might not play too many videogames, eSports is a fast growing and hugely popular area for the Millennial and Gen Z generations. Take a look at Global X’s Video Games and Esports ETF (ticker: HERO), which invests in companies in the eSports space, ranging from video game production companies to businesses which facilitate the streaming of eSports play/competition.Read more