Gaming ETF ESPO Nears $500 Million — Thematics on the Rise?

Core Insights - Thematic ETFs have gained traction, particularly the VanEck Video Gaming and eSports ETF (ESPO), which has seen significant growth in assets under management (AUM) this year [1][3][5] Group 1: ETF Overview - The VanEck Video Gaming and eSports ETF (ESPO) launched prior to the 2021 ETF rule and charges 56 basis points, tracking the MVIS Global Video Gaming & eSports index [2] - The index consists of fewer than 30 companies, focusing on subsectors like gaming hardware and software, providing concentrated exposure [2] Group 2: Performance Metrics - ESPO's AUM has increased from approximately $279 million to $496 million year-to-date, with about $70 million in net inflows, driven by price appreciation [3] - The ETF has delivered a year-to-date return of 45.5%, outperforming its category and segment averages [4] Group 3: Notable Holdings - AppLovin Corp (APP), the largest holding in ESPO, has achieved a 100% return year-to-date, with a return on equity of 259% and a year-over-year quarterly revenue growth of 77% [4] - Other significant holdings include Nintendo and Unity Software, enhancing the ETF's focus on gaming software and development [4]