U.S. and UCITS funds combine to reach the milestone as the fast-growing sector has been driven by consumer trends, investor popularity and strong performance
NEW YORK--(BUSINESS WIRE)--VanEck today announced the firm has surpassed $1 billion in assets globally in its video gaming and esports strategy.
The assets represent the collective total in the VanEck Vectors® Video Gaming and eSports ETF (Nasdaq: ESPO®), the first pure-play ETF of its kind, launched in 2018, and the European version of the strategy, the VanEck VectorsTM Video Gaming and eSports UCITS ETF which launched in 2019. The relatively new strategy has reached this significant asset threshold in under three years of trading, a testament to the popularity of the space and the targeted exposure offered by these vehicles.
“Consumer preferences are evolving towards online and digital streaming entertainment,” said Ed Lopez, Managing Director, Head of ETF Product at VanEck. “While we couldn’t have anticipated the stay-at-home mandates of 2020, we believe the pandemic has accelerated a number of long-term trends, as evidenced by the video gaming industry hitting $159 billion in projected revenues for 2020.1”
“We’ve seen great adoption and interest from both individuals and financial professionals in Europe, demonstrating recognition of video gaming and esports as a big and growing business and its global appeal,” added Martijn Rozemuller, Managing Director, Head of Europe at VanEck.
The U.S.- domiciled ETF and the UCITS-compliant version both seek to track, before fees and expenses, the performance of the MVIS® Global Video Gaming and eSports Index (MVESPOTR). The index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in video gaming and esports. To be eligible for inclusion in the index, companies must generate at least 50% of their revenues from video gaming and/or esports.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of August 31, 2020, VanEck managed approximately $63.7 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
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An investment in the Funds may be subject to risks which include, among others, investing in the video gaming and esports companies, software, internet software & services and semiconductor industries, equity securities, communication services and information technology sectors, small- and medium-capitalization companies, issuer-specific changes, special risk considerations of investing in Asian, Japanese and emerging markets issuers, foreign securities, foreign currency, depositary receipts, market, operational, cash transactions, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Small- and medium-capitalization companies may be subject to elevated risks.
MVIS Global Video Gaming and eSports Index is the exclusive property of MV Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MV Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. The VanEck Vectors Video Gaming and eSports ETF is not sponsored, endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Certain indices may take into account withholding taxes. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses. Index returns assume that dividends have been reinvested.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Funds or Strategies carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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1 Source: Newzoo, 2020.
Mike MacMillan/Chris Sullivan