VanEck is offering the first ETF in gaming and eSports innovate business segment with the launch of Vectors Video Gaming and eSports Ucits ETF on the London Stock Exchange (LSE).
"Just a few years ago, the success story of sold-out stadiums, millions of viewers, high-calibre sponsors and notable marketing activities was centred around football, baseball, basketball and hockey. But today, it is just as focused upon the world of video gaming and esports," explained Ed Lopez, head of ETF Product at VanEck.
The video gaming market is in a phase of transformational growth and is expected to generate revenues of almost $150bn in 2019, representing an increase of around 10% compared with 2018. One of the growth drivers for the sector is the rise of professional, competitive video gaming. For example, while the NFL Superbowl in 2018 achieved around 106 million US viewers, around 100 million people around the world watched the final of the "League of Legends 2018 World Championships". This year, up to 454 million viewers could be reached through professional esports events. Since 2015, esports has recorded an average revenue growth of almost 40 per cent and is benefiting from a young and wealthy audience.
"Asia is the spearhead of this development and accounts for around 50 percent of the global esports audience. For the next Asian Games in 2022 in Hangzhou, China, esports will even be official events, alongside traditional forms of sport," said Dominik Schmaus, product manager at VanEck.
In Europe, well-known football clubs such as Schalke 04, Manchester City, Ajax Amsterdam and Paris St-Germain are also moving in on the digital trend and setting up their own esports departments.
"We expect that established video gaming companies will benefit most from the rise in esports, through partnerships, league ownership, sponsoring, franchising and other marketing measures. Esports has brought video gaming out of the living room and into the stadiums," continued Lopez.
Esports are becoming increasingly popular and both the technology as well as the games and events are developing in harmony with the consumers' needs. By investing in companies in this segment, investors can take part in this long-term growth story.
VanEck Vectors Video Gaming and eSports Ucits ETF offers investors the opportunity to track the overall performance of companies that are active in the video gaming and esports segment. It seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Video Gaming and eSports Index.
The global index maps the value development of the global video gaming and esports segment and, under the pure-play concept, exclusively includes companies that generate more than 50% of their revenues through video gaming and esports.