#7 - Global X Video Games & Esports ETF (NASDAQ:HERO)
As you can see, there are many ways to invest in the eSports sector. But some investors may find an exchange-traded fund (ETF) to be an easier way to gain widespread exposure to the sector. If that fits your investment style, check out the Global X Video Games & Esports ETF (NASDAQ: HERO). This fund tracks the Solactive Video Games & Esports Index, a modified market-cap weighted index of companies in the video game and eSports industry.
HERO’s holdings include a mix of companies involved in every aspect of the esports sector. Japan and the United States account for over 60% of the fund’s geographic composition. However, no stock takes up more than 10% of the fund’s 40 holdings.
HERO launched in 2019 and has already accumulated over $1 billion in assets. It has delivered investors a total return of 73% in that time.
About Global X Video Games & Esports ETF
The Global X Video Games & Esports ETF (HERO) is an exchange-traded fund that is based on the Solactive Video Games & Esports index, a modified market-cap-weighted global index of companies in video games and esports industry. HERO was launched on Oct 25, 2019 and is managed by Global X.
- Current Price
- $28.25
- Asset Class
- Equity
- Fund AUM
- $122.37 million
- Expense Ratio
- 0.50%
- 6-Month Performance
- 21.56%
- 1-Year Performance
- 33.57%
If you're not sure about the opportunity in esports, maybe this statistic will change your mind: over 200 colleges and universities currently have esports teams on their campuses. That tracks with a CNBC report showing that young gamers between the ages of 18 and 25 watch esports 34% more than traditional sports.
Plus, now that the International Olympic Committee (IOC) has recognized esports as a legitimate sport and has announced plans for the inaugural Olympic Esports Games. Initially scheduled for 2025, the event has been postponed and is now set to take place in Riyadh, Saudi Arabia, in 2027. That will attract even more attention to the investment possibilities in esports.
The takeaway for investors is that the target market for esports has a firm foundation from which to grow. That said, this is a sector that remains in its early stages, and some of the small-cap companies may face pressure to grow their businesses. But as this special presentation shows, there's an opportunity to take a buy-and-hold approach with some solid large-cap companies.
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