ESPO provides targeted exposure to “the future
of sports”: video game and related software developers, streaming
services, companies involved in eSports events, and more
VanEck today announced the launch of the VanEck Vectors® Video
Gaming and eSports ETF (NYSE Arca: ESPO).
“Just a few years ago, talk of sold out stadiums, viewership in
the millions, high-profile sponsors, and notable marketing
arrangements would have been centered on football, baseball,
basketball or hockey. But today, that talk can just as easily be
applied to the world of video games and eSports,” said Ed Lopez,
Head of ETF product at VanEck. “This is the future of sports and a
growth story that is global in scope.”
The video game market is undergoing a period of transformative
growth, added Lopez, and is predicted to generate close to $140
billion in revenue in 2018, an increase of more than 13 percent
from 2017.1 It’s not just that people are playing more video
games on more platforms; one of the driving factors of growth for
the industry has been the emergence of professional video gaming,
or eSports. We anticipate that established video game companies are
set to benefit the most with the rise of eSports, through
partnerships, league ownership, sponsorships, franchising, and
other marketing arrangements.
“eSports have brought video games out of the rec room and into
the stadiums,” continued Lopez. eSports has become one of the
largest spectator sports in the world with games streamed online or
on major broadcast outlets like ESPN and at live gaming events held
in stadiums. For example, the League of Legends world finals in
2017 attracted more viewers than the MLB World Series, the NBA
finals, and the NHL Stanley Cup finals.2 In 2018, the global
eSports audience is expected to reach 380 million people.3
“The video game industry is disrupting traditional media and
entertainment,” said Lopez, “and with a young and highly engaged
demographic, ESPO provides investors access to what we believe can
be a long-term growth story.”
ESPO seeks to track, before fees and expenses, the performance
of the MVIS® Global Video Gaming and eSports Index (MVESPO). 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. This may include companies developing video games and
related software, streaming services, and/or those involved in
eSports events. To be included in the index, companies must
generate at least 50% of their revenues from video gaming or
eSports. This allows ESPO to have the highest concentration, among
U.S.-listed ETFs, of pure play names participating in this
fast-growing space.
ESPO has a gross expense ratio of 0.60% and a net expense ratio
of 0.55%, which is capped contractually until [February 1,
2020.]4
ESPO joins VanEck’s suite of industry-focused
equity ETFs, which also includes the VanEck Vectors Semiconductor
ETF (SMH®), VanEck Vectors Biotech ETF (BBH®), VanEck Vectors
Environmental Services ETF (EVX®), VanEck Vectors Generic Drugs ETF
(GNRX), VanEck Vectors Pharmaceutical ETF (PPH®), VanEck Vectors
Retail ETF (RTH®), and VanEck Vectors Gaming ETF (BJK®).
About VanEck
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 September 30, 2018, VanEck managed approximately
$46.1 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.
Important Disclosures
Indexes are unmanaged and are not securities in which an
investment can be made. Index returns do not reflect a deduction
for fees & expenses.
MVIS Global Video Gaming and eSports Index is the exclusive
property of MVIS (a wholly owned subsidiary of Van Eck Associates
Corporation), 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.
An investment in the Fund may be subject to risks which include,
among others, investing in the video gaming and eSports industry,
information technology, equity securities, foreign securities,
foreign currency, special risk considerations of investing in
Asian, Japanese and emerging markets issuers, depositary receipts,
small- and medium-capitalization companies, cash transactions,
market, operational, index tracking, authorized participant
concentration, absence of prior active 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.
The Fund's assets may be concentrated in a particular sector and
may be subject to more risk than investments in a diverse group of
sectors.
Fund shares are not individually redeemable and will be issued
and redeemed at their net asset value (NAV) only through certain
authorized broker-dealers in large, specified blocks of shares
called “creation units” and otherwise can be bought and sold only
through exchange trading. Shares may trade at a premium or discount
to their NAV in the secondary market. You will incur brokerage
expenses when trading fund shares in the secondary market. Past
performance is no guarantee of future results.
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 Fund
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.
____________________
1 Source: Newzoo 2018 Global Games Market
Report
2 Source:
https://dotesports.com/league-of-legends/news/lol-worlds-final-viewership-18796
and
http://www.sportsmediawatch.com/2018/01/top-sports-audiences-2017-nfl/
3 Source: Newzoo, 2/28/18: Global Esports
Economy Will Reach $905.6 Million in 2018 as Brand Investment Grows
by 48%
4 Cap excludes acquired fund fees and
expenses, interest, trading, taxes, and extraordinary expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181017005691/en/
MacMillan CommunicationsMike MacMillan/Chris Sullivan,
212-473-4442chris@macmillancom.com
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