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Love Video Games? This ETF Could Be a Great Option for Your Portfolio
Whether you’re a young investor or just want to invest in the latest trends which may be popular with younger crowds, video games and e-sports is a great place to invest in. One exchange-traded fund (ETF) which gives you some excellent exposure to those areas is the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO).
Year to date, the fund has generated returns of 19%. It holds positions in companies which are involved in developing video games, e-sports, as well as the hardware and software related to gaming. The fund has a net expense ratio of 0.56% and it has 29 holdings. It isn’t an overly diverse fund but it’s definitely a solid way to invest in what may be some hot industries for years to come.
The top three stocks in the fund are Tencent Holdings (OTC:TCEHY), Advanced Micro Devices (NASDAQ:AMD), and NetEase (NASDAQ:NTES). Together, those three stocks account for just over 23% of the fund’s overall weight. Other notable stocks within the ETF include Eletronic Arts (NASDAQ:EA), Nintendo (OTC:NTDOY), and Roblox (NYSE:RBLX).
There’s some good variety in the fund and the vast majority of the stocks (85%) have market caps of more than $5 billion, which means investors aren’t taking on a lot of risk with small and unknown stocks with this ETF.
In the long run, artificial intelligence could open up more opportunities in gaming and e-sports and for investors. Overall, this can be a solid ETF to hang on to for the long term given the solid growth stocks it invests