There is no shortage of options out there for ETF investors, and there’s one recent listing that will let you get in on the growing esports trend.
Known as the Roundhill Bitkraft Esports and Digital Entertainment ETF (NYSE Arca: NERD), it provides investors with some of the top stocks in the world of gaming, including big names like Take-Two Interactive (NASDAQ:TTWO) and Activision Blizzard (NASDAQ:ATVI).
The largest holding in the ETF, however, is AfreecaTV Co, which is a P2P video streaming service that trades on the Korean exchange.
The esports industry is still in its very early stages and so we’ll likely see the makeup of this ETF change over time as new players enter it. All investors need to look at is the popularity of the game Fortnite, which is having a World Cup this year as proof of the potential that exists in the market.
According to Newzoo projects, which has researched the industry, it believes that esports will hit the $1-billion mark for the first time this year. That’s still a fairly small market size, but it does indicate things are growing in the industry and there are no signs that it’s going to slow down anytime soon.
Online streaming and sharing are only going to get bigger, the only question is how profitable and successful the underlying stocks will be that are involved in it.
It might take a few more years for the industry to take off, but there’s no reason the ETF can’t start producing strong returns, especially as the excitement around esports continues to build.