- The ASX has listed its first ever esports-focused ETF from global investment firm VanEck.
- The fund has a holding of 25 major companies that generate half their revenue from video games and esports, including Tencent, Nintendo and NVIDIA.
- The company is pitching the ETF as a way to capitalise on the enormous interest in the video game industry and into the burgeoning world of esports.
- Visit Business Insider Australia’s homepage for more stories.
As the video game industry cements itself as the most valuable for of entertainment worldwide, a global investment firm is offering Australian investors a chance to get in on the action.
Last week, Australia’s first ever video game fund, VanEck’s Video Gaming and Esports ETF (ESPO), debuted on the Australian Stock Exchange.
VanEck’s Managing Director of Asia Pacific Arian Neiron said that the fund offers Australian investors an opportunity to capitalise on the explosive growth in the global video game industry.
“We believe the growth of video gaming and esports is a trend, not a fad. It reflects structural changes including the increased consumer demand for online entertainment, the rise of interactive entertainment and the fragmentation of the digital media landscape,” he said in a statement.
The fund includes 25 international companies that generate at least half of their revenue from video games and esports
Among the fund’s top holdings are Fortnite publisher Tencent, Nintendo and hardware producer Nvidia.
The company will also invest in software developers, streaming services and other esports-related companies, and will charge a 0.55% management fee.
Neiron cited three reasons for the growth of the industry: a generational shift towards online gaming from younger generations, increasing innovations in technology and a potential for growth in eSports monetisation.
“With the coronavirus pandemic sweeping the globe and people confined to their homes in many nations now and into the foreseeable future, eSports and interactive video gaming will become an increasingly important form of entertainment,” Neiron said.
“The eSports and video gaming industry is growing at a breakneck pace, and is already bigger than the cybersecurity industry and robotics industry. Since 2015, video game revenues have seen an annualised growth rate of 13% and it has been estimated that by 2023, video game revenues should hit US$200 billion.”
In 2018, PwC estimated that Australia’s own esport industry was worth $ 8million, and will grow to $21 million by 2022.
VanEck now offers 25 ETFs, after recently adding 4 to the ASX: Video Gaming and Esports ETF, Vectors Global Healthcare Leaders, Vectors Morningstar World ex Australia Wide Moat and Vectors Morningstar Australian Moat Income.
Business Insider Emails & Alerts
Site highlights each day to your inbox.