Playing the Rise in Video Game M&As
M&A activity in the video game industry is, we believe, helping to drive growth both for the acquiring companies and broader industry.
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Our ETF provides exposure to the digital disruptors transforming entertainment and sports.
VanEck Vectors Video Gaming and eSports UCITS ETF (ISIN: IE00BYWQWR46) gives investors the following advantages:
Risk: You may lose money up to the total loss of your investment due to the Main Risk Factors such as equity market risk, industry or sector concentration risk and risk of investing in smaller companies which are described below and in the sales prospectus.
From home consoles to in-game events with millions of attendees, the video game industry is disrupting traditional sports and media, and experiencing a period of transformative growth.
Global revenues of video gaming industry (USD billion)
Source: NewZoo Global Games Market Reports 2017, 2018, 2019, 2021.
* Estimates
Growth is expected to continue on the back of new technology and business models:
Increasingly powerful smartphones put high-end games within the reach of billions of people worldwide.
Cloud gaming platforms bring video games into living rooms, without a need to purchase expensive equipment.
In-game spending increases the life cycle of games and also potential revenues from paying customers.
Esports, multiplayer video games played competitively for spectators, are adding a new dimension to the video gaming industry.
Following the stellar growth of video gaming industry, shares of video gaming and esports companies have performed very well.
| 1 Month | 3 Months | YTD | 1 Year |
3 Years (annualised) |
5 Years (annualised) |
Since Inception (annualised) |
|
| VanEck Vectors Video Gaming and eSports UCITS ETF | -5.39% | -10.20% | -6.71% | 6.77% | — | — | 35.22% |
Figures in the table as of 30 September 2021. Periods greater than one year are annualised. Source: VanEck. Past performance is no guarantee of future results.
The ETF captures the largest pure play companies that generate more than 50% of revenues from video gaming and esports.
Includes the legendary innovators shaping the industry. The top 10 names comprise over 60% of the portfolio.
| Top 10 Players* | Index Weighting |
| Nvidia Corp | 9.0% |
| Advanced Micro Devices Inc | 7.9% |
| Tencent Holdings Ltd | 7.6% |
| Sea Ltd | 7.0% |
| Nintendo Co Ltd | 5.7% |
| Activision Blizzard Inc | 5.4% |
| Netease Inc | 5.3% |
| Bilibili Inc | 4.8% |
| Unity Software Inc | 4.7% |
| Electronic Arts Inc | 4.6% |
*Top 10 holdings of ESPO as of 19/07/2021. These are not a recommendation to buy or sell any security. Security and holdings may vary.
The ETF invests in companies from all over the world, including countries that are not easy to access through your bank or broker.
Dynamic exposure to this rapidly developing sector, as the content of the ETF is adjusted every three months. Our ETF allows you to remain invested in the leading video gaming and esports companies worldwide.
Risk: Investors should consider risks before investing. See dedicated Main Risk Factors section on this website.
The ETF provides exposure to global video game and esports companies involved in the development of video games, esports and related hardware and software.
ISIN: IE00BYWQWR46
The prices of the securities in the Fund are subject to the risks associated with investing in the securities market, including general economic conditions and sudden and unpredictable drops in value. An investment in the Fund may lose money.
The Fund’s assets may be concentrated in one or more particular sectors or industries. The Fund may be subject to the risk that economic, political or other conditions that have a negative effect on the relevant sectors or industries will negatively impact the Fund's performance to a greater extent than if the Fund’s assets were invested in a wider variety of sectors or industries.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
M&A activity in the video game industry is, we believe, helping to drive growth both for the acquiring companies and broader industry.
Read Blog