VanEck Vectors Video Gaming and eSports UCITS ETF

Issuer: Van Eck

Asset Class: Equity

TER: 55bps

Trading Currency: GBP

Pays Income: False

Listing Date: 26 Jun 2019

Ticker: ESGB

ISIN: IE00BYWQWR46

This investment strategy offers exposure to the rapidly expanding video gaming and eSports industry, a dominant and influential sector within the global entertainment landscape. The industry's growth is propelled by powerful secular trends, including advancements in hardware and software technology, the proliferation of high-speed internet, and the ubiquity of mobile devices. These factors have cultivated a massive, engaged, and diverse global player base that transcends traditional demographic boundaries, making interactive entertainment a mainstream activity for billions worldwide. The industry is no longer solely reliant on one-time game sales; it has evolved to incorporate highly profitable and resilient recurring revenue models. These include in-game purchases, subscription services, downloadable content, and season passes, which foster long-term player engagement and create a steady stream of income for developers and publishers.

Beyond gaming itself, the professionalization of eSports presents a significant and layered investment opportunity. Mirroring the ecosystem of traditional sports, eSports now boasts professional leagues, sold-out arena events, and a vast global viewership that rivals many established sporting events. This has unlocked substantial revenue streams from media rights, corporate sponsorships, advertising, and merchandise. This fund focuses on companies that are at the core of this digital revolution, targeting firms that derive the majority of their revenue from video games and eSports. This includes game developers, publishers, and manufacturers of essential hardware, offering a pure-play approach to capitalizing on the sustained growth of interactive digital entertainment.