BlackRock launches digital entertainment and education ETF

Jul 6th, 2022 | By | Category: Equities

BlackRock has launched a new thematic equity ETF in Europe providing exposure to companies offering entertainment or education services through digital channels.

Evy Hambro, Global Head of Thematic and Sector Investing at BlackRock

Evy Hambro, Global Head of Thematic and Sector Investing at BlackRock.

The iShares Digital Entertainment and Education UCITS ETF has been listed on Deutsche Börse Xetra (CBUN GY) and Euronext Paris (DGGE FP) in euros as well as on SIX Swiss Exchange (PLAY SW) and Euronext Amsterdam (PLAY NA) in US dollars.

The fund is linked to the STOXX Global Digital Entertainment and Education Index which selects its constituents from a universe of developed and emerging market stocks with market capitalizations above €200 million and average daily trading volumes greater than €1m.

The methodology harnesses FactSet’s Revere Business Industry Classification System (RBICS) to screen for firms that generate more than half of their revenues from over 30 industries associated with the digital entertainment and education theme.

Targeted industries include educational software, gaming products and services, streaming content platforms, and electronic devices, among many others.

The index aims to include at least 80 constituents which are then weighted using a combination of equal weight and float-adjusted market capitalization approaches.

The ETF comes with an expense ratio of 0.40% and is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The fund is the first in Europe to combine digital entertainment and education themes into a single strategy. There are, however, several ETFs that target these themes individually or focus on related sub-themes such as the metaverse, video gaming & eSports, sports betting & iGaming, and educational technology.

These include the ETC Group Global Metaverse UCITS ETF (METR), VanEck Vectors Video Gaming and eSports UCITS ETF (ESPO), Fischer Sports Betting & iGaming UCITS ETF (BETS), and Rize Education Tech and Digital Learning UCITS ETF (LERN).

Evy Hambro, Global Head of Thematic and Sector Investing at BlackRock, said: “Thematic investing is being used by an increasingly diverse investor base who are seeking exposure to the secular, disruptive, and long-term trends that are set to define the future of the global economy. As technology continues to revolutionize the entertainment industry and demand for digital experiences changes the way people play and learn, we have worked with Qontigo to design the iShares Digital Entertainment & Education UCITS ETF, providing investors with granular exposure to one area of the global economy that is evolving rapidly.”

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