Game on. Invest in the future with VanEck’s Video Gaming and eSports ETF
A new video gaming and eSports exchange traded fund (ETF) from VanEck will be an Australian first, providing investors with unique exposure to the video games and eSports industry which is growing exponentially.
Sydney, 31 August 2020 – A new video gaming and eSports exchange traded fund (ETF) from VanEck will be an Australian first, providing investors with unique exposure to the video games and eSports industry which is growing exponentially as more people turn to digital entertainment as lockdown measures force millions of people worldwide to stay home.
With targeted exposure to companies involved in the future of gaming entertainment and sports, the VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO) is at final stages of approval and will commence trading on ASX in coming weeks. ESPO will focus on investing in the largest pure-play video gaming and eSports companies globally. The ETF invests only in companies that generate at least 50% of their revenues from video gaming and/or eSports.
Arian Neiron, VanEck's Managing Director and Head of Asia Pacific, said: “ESPO provides investors with access to a long-term structural growth story. Not many people realise there are 2.7 billion gamers globally, that is more than Facebook users, Apple devices and Netflix subscribers. 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 . Those are exciting growth forecasts, and ESPO will offer investors the ability to access this potential growth by investing in these innovative companies and their market captivating games,” Neiron said.
“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” said Neiron.
“ESPO’s holdings include leading game publishers Tencent, Nintendo, Electronic Arts and Activision Blizzard, which have the potential to continue to grow their revenues at strong rates. ESPO will also invest in related software developers, streaming services, and companies involved in eSports events. Revenue requirements ensure targeted exposure to video gaming and eSports companies.”
eSports is a form of competitive video gaming, commonly held as organised, multiplayer spectator events, often between professional players.
“eSports has created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales and advertising. Publishers are likely to continue investing in new technology developments while competing to maintain market share and producing games people want to play,” said Neiron.
“Video gaming and eSports represent a fundamental paradigm shift in how people use entertainment and technology to interact with each other. eSports and online video games are a long-term disruptive force in the traditional media, entertainment and technology industries. Australian investors can now invest in these winning platforms with ESPO, an Australian first ETF,” said Neiron.
VanEck Vectors Video Gaming and eSports ETF
VanEck is one of the world’s largest issuers of ETFs (Exchange Traded Funds), managing in excess of $50 billion globally for individual and institutional investors. Founded in New York in 1955, VanEck is a pioneer in international investing and in gold funds, launching the first gold equities fund and the first gold ETF in the US.
In Australia, VanEck is the fastest growing ETF provider in the country and a leader in ‘smart beta’ investment strategies. We have 25 exchange traded funds on ASX that focus on delivering superior performance through beyond-the-usual approaches and providing access to asset classes typically unavailable to Australian investors.
General information only
This information is issued by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) as responsible entity of the proposed VanEck Vectors ETFs. Units in the fund are not yet available for trading. This is general advice only about financial products and is not personal financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision in relation to a fund, you should read the PDS and with the assistance of a financial adviser consider if it is appropriate for your circumstances. The PDS will be available at vaneck.com.au or by calling 1300 68 38 37 after the end of the exposure period required for the fund on ASIC Offer Notice Board. ESPO invests in international markets which have heightened risks compared to the typical risks associated with investing in the Australian market. These include, foreign currency, ASX trading time differences, emerging markets, country or sector concentration, political, regulatory and tax risks. The PDS details the key risks.
No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from the fund.