Video game ETFs will shine in sales growth in May

The video game industry witnessed strong demand amid a pandemic and improved weather conditions in May. In particular, the ongoing health crisis has been a blessing in disguise for this space so far. In fact, consumer spending on video games in 2020 affected by a pandemic hit a new record of $ 56.9 billion, 27% more than the 2019 reading, according to The NPD Group.

Another report from the market research group reflected that the video game industry, including packaged media, digital, consoles and accessories, recorded strong sales in the first quarter of 2021, with a total expenditure of $ 14.9 billion. It should be noted that the figure increased by 30% year-on-year. Remarkably, the latest report from the industry monitoring firm reveals the same story.

Video game sales soar again

Recently released data from The NPD Group highlights that the video game industry, including packaged, digital media, consoles and accessories, experienced solid sales in May, spending a total of $ 4.452 billion, up 3% from the previous year. In addition, consumer spending to date has also increased 17% year-on-year to $ 24.02 million.

In particular, spending on video game content, including full physical and digital games, as well as consumer spending on DLC / MTX and subscription to the Console, Cloud, Mobile, Portable, PC and VR platforms, also increased by 3 % over the previous year to $ 4.07 billion last month. Notably, there was a 5% increase in hardware spending during May to $ 244 million.

In particular, Resident Evil: Village, MLB: The Show 21, Call of Duty: Black Ops: Cold War, New Pokemon Snap, Mortal Kombat 11, Mario Kart 8, Returnal, Animal Crossing: New Horizons, Minecraft i Call of Duty: Modern Warfare they were one of the best-selling and most played games in May.

Game developers continue to innovate and attract users every day and also keep the old ones. They are increasing the participation of existing players by providing new titles, levels, areas or environments that games require at regular intervals.

In addition, mergers and acquisitions continue to support the gaming space. Microsoft MSFT completed the purchase of Bethesda’s parent company, ZeniMax Media, in a total cash deal worth $ 7.5 billion in March this year. At the Xbox & Bethesda Games Showcase, Microsoft announced an attractive gaming lineup for its Xbox consoles. It showed 30 new titles, included Forza Horizon 5 i Battlefield 2042. In fact, 27 of those 30 titles will be available with the Xbox Game Pass service.

Video game ETF to keep winning

It seems that the video game space boom may remain even in the post-pandemic era, as the outbreak greatly changed the lifestyle and preferences of U.S. citizens. In this context, investors can take a look at the following video game ETFs:

The Roundhill BITKRAFT digital sports and entertainment ETF STUDENT

The fund is designed to provide investors with exposure to sport and digital entertainment, providing investment results that closely match, before expenses and expenses, the performance of the Roundhill BITKRAFT Sports Index. He has 35 shares in the cart. With an AUM of $ 96.5 million, the fund charges 50 basis points (bps) in relation to expenses (read: Probable increase in capital gains tax a point of purchase of these ETFs?).

VanEck Vectors, Video Games and eSports ETFs ESPO

The fund aims to replicate as closely as possible, before commissions and expenses, the performance and performance of the MVIS Global Video Gaming and eSports index, which aims to monitor the overall performance of companies involved in video game development, sports and related hardware and software. He has 26 shares in the basket. With an AUM of $ 797.6 million, the fund charges 55 bps in terms of expenses (read: Nvidia Blockbuster Q1 Earnings puts these ETFs in focus).

Global X Video Games & Sports ETF HEROES

The fund seeks to invest in companies that develop or publish video games, facilitate the transmission and distribution of video game or sports content, own and operate within competitive sports leagues, or produce hardware used in video games and sports, including augmented and virtual reality. . He has 39 shares in the cart. With an AUM of $ 648.3 million, the fund charges a 50 bps expense ratio (read: Activision ETFs will shine in strong first-quarter results).

Wedbush ETF Technical video game ETF GAMR

The background provides pure play and diversified exposure to a dynamic intersection of technology and entertainment. It also generally corresponds to the performance and performance of the EEFund video game technology index. The index is designed to reflect the performance of companies involved in the video game technology industry, including game developers, console and chip manufacturers, and game retailers. He has 136 shares in the cart. With an AUM of $ 145.6 million, the fund charges an expense ratio of 75 bps.

Do you want key ETF information to be delivered directly to your inbox?

The free Zacks fund newsletter will keep you up to date with the latest news and analysis, as well as the best-performing ETFs, every week. Get it for free >>

Click for this free report

Microsoft Corporation (MSFT): Free stock analysis report

Global X Video Games & Sports ETF (HERO): ETF Research Reports

Wedbush ETFMF Video Game Tech ETF (GAMR): ETF research reports

VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF research reports

Roundhill BITKRAFT Sports & Digital Entertainment ETF (NERD): ETF Research Reports

To read this article on Zacks.com, click here.

Zacks Investment Research

Want the latest Zacks Investment Research recommendations? Today you can download seven best stocks over the next 30 days. Click for this free report

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *