eSports is quickly becoming one of the hottest trade ideas of the year.
Just in 2019, this market is expected to grow 15% year to 453.8 million users, according to analysts at Newzoo. In addition, total revenue for the global market could reach $1.1 billion in 2019. By 2022, it could fly as high as $3.2 billion.
“eSports’ impressive audience and viewership growth is a direct result of an engaging viewership experience untethered to traditional media,” says Newzoo CEO Peter Warman.
“Plenty of leagues and tournaments now have huge audiences, so companies are positioning themselves to directly monetize these eSports enthusiasts. While this began happening last year, the market is constantly expanding on its early learnings. The result: 2019 will be the first billion-dollar year for eSports, a market that will continue to attract brands across all industries.”
By 2022, says Goldman Sachs, the eSports audience could be up to 276 million.
So, it makes sense to look at stocks, and ETFs that could potentially benefit.
One of the top ones to keep an eye on is the VanEck Vectors Video Gaming and eSports ETF (ESPO), “which is intended to track the overall performance of companies involved in video game development, esports, and related hardware and software,” according to VanEck. Some of its top holdings include NVIDIA and Advanced Micro Devices.
Chart from StockCharts.com
Other top eSports ETFs to keep an eye on include:
ETMFG Video Game Tech ETF (GAMR)
The fund seeks to provide investment results that correspond to the price and yield performance of the Fund Video Game Tech Index.
VanEck Vectors Gaming ETF (BJK)
This fund offers concentrated exposure to the global gaming industry, focusing in on casino operators but also holding technology firms and sports & race book operators as well.