ASX exchange-traded fund (ETF) investors can’t seem to catch a break. Almost every month or two, it seems a new ASX ETF joins the Aussie share market. Last year alone, we saw the ASX debut of the BetaShares Crypto Innovators ETF (ASX: CRYP). Not to mention the BetaShares Climate Change Innovation ETF (ASX: ERTH). Or the ETFS Hydrogen ETF (ASX: HGEN). But today, the ASX welcomes yet another new fund. This one is also from provider BetaShares, and is now known as the BetaShares Video Games and Esports ETF (ASX: GAME).
GAME aims to track the Nasdaq CTA Global Video Games & Esports Index. This, in turn, aims to provide “exposure to a portfolio of leading global video gaming and esports companies”.
The provider points out that video games and esports have been a ballooning industry over the past decade or two. It is expected to grow far further over the coming years, if BetaShares is to be believed.
As it currently stands, GAME’s portfolio has 49 different underlying holdings, hailing from 11 different countries. The largest chunk is towards the United States though, with more than 40% of the portfolio.
GAME on for a new ASX ETF
Its largest shares include Activision Blizzard Inc (NASDAQ: ATVI), Electronic Arts Inc (NASDAQ: EA), China’s Tencent Holdings, Japan’s Nintendo and Take-Two Interactive Software Inc (NASDAQ: TTWO).
But GAME isn’t the first ETF to cover gaming and esports on the ASX. The VanEck Video Gaming and Esports ETF (ASX: ESPO) has been listed on the ASX since September 2020. It currently holds many of the same shares as GAME, including Tencent, Activision Blizzard and Nintendo, albeit with more weighting to chip makers like NVIDIA Corporation (NASDAQ: NVDA). However, ESPO tracks a different index – the MVIS Global Video Gaming and eSports Index.
BetaShares tells us that the Nasdaq index that GAME will track has delivered a performance of -12.95% over the past 12 months, but a far more positive average of 18.77% per annum over the past 3 years.
GAME will charge its investors an annual management fee of 0.57% per annum, or $57 per year for every $10,000 invested.
BetaShares Video Games and Esports ETF units opened at $11.96 this morning and are currently priced at $12.12 each at market close today, up 1.42%.
The post A new gaming ETF just joined the ASX. Here’s what we know appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended Activision Blizzard, Nvidia, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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