ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Coronavirus May Have A Unique Effect On Esports ETFs
Beyond Basic Beta Channel
Share

Coronavirus May Have A Unique Effect On Esports ETFs

Tom LydonFeb 20, 2020
2020-02-20

There’s certainly more to the story, but it’s worth noting that against the backdrop of rising coronavirus cases in China, the VanEck Vectors Video Gaming and eSports ETF (ESPO B-) and rival video game ETFs are soaring to the start 2020.

For its part, ESPO is higher by 8.51%. ESPO seeks to track 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.

It may seem like a stretch in terms of affecting ESPO and related ETFs, but with so many Chinese cities shutdown and travel within the country and to Hong Kong and Macau, among other destinations favored by Chinese tourists, halted, many in the country are coping by devoting even more of their leisure time to gaming and watching fellow gamers on live-streams.

“Usually, during the Lunar New Year that falls in January or February each year, gamers in China have more time to play games during the holiday season,” reports CNN. “But this year, following the coronavirus outbreak, authorities decided to extend the holiday by almost three weeks in many places, leaving millions of people with a lot of time to fill.”

China Gaming Connection

As has been widely noted, China is already the world’s largest internet market and it’s the biggest when it comes to esports and online gaming. That perch is reflected in ESPO as China represents 17.38% of the fund’s geographic weight, trailing only the U.S. and Japan.

The explosive growth of esports could even power the space past traditional sports where revenue generation is now heavily tilted towards enhancing a fan’s multimedia experience. This is an important concept in China where many younger demographics that are chock full of devoted gamers are highly technologically savvy.

“Tencent’s mobile game, ‘Honor of Kings,’ hit a new all-time high in daily average users during the week of January 30, according to Niko Partners, a research firm that focuses on the gaming industry in Asia,” reports CNN.

Tencent is ESPO’s second-largest holding at 8.62%. The coronavirus has forced the cancellations of some esports competitions, but that isn’t keeping Chinese gamers from gaming.

“Total game downloads on Apple’s app store in China increased 27.5% year over year and revenue rose by 12.1%, according to market research firm Sensor Tower,” notes CNN.

This article originally appeared on ETFTrends.com.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X