PureFunds unveils video game ETF

Mar 10th, 2016 | By | Category: Equities

PureFunds, a US-based provider of niche thematic exchange-traded funds, has unveiled the world’s first dedicated video game technology ETF. Listed on the NYSE Arca, the PureFunds Video Game Tech ETF (GAMR) offers pure-play exposure to this increasingly important tech and entertainment sector.

PureFunds unveils video game ETF

PureFunds’ video game ETF will invest in a wide range of companies in the video game sector.

The ETF is linked to the EE Fund Video Game Tech Index, which tracks 36 listed companies across the globe actively engaged in supporting or utilizing the video gaming industry.

Companies appearing in the index include video game software developers, publishers and distributors, gaming platform providers, gaming accessories and peripherals manufacturers, and large tech and media conglomerates whose business models actively support the video gaming and interactive simulation segments.

The global video game industry has expanded to all corners of the world and to every size of screen from its humble beginnings in pizza parlours and arcades. From mobile devices to personal computers, to consoles and set-top boxes, video games are enjoyed by over a billion people with estimates of global revenue approaching $100 billion annually, according to PureFunds.

Exciting trends such as the shift to digital distribution of software, proliferation of HD and 4K displays, cloud content and streaming, virtual/augmented reality, motion tracking, episodic content, and diversified monetization models, are stimulating innovation and offer expanded opportunities for entertainment, education, simulation, and other game tech applications.

Andrew Chanin, CEO of PureFunds, said in a statement: “Investing in technology has developed as a sector where its different segments redefine existing industries or introduce new economies altogether, and it’s become increasingly important for investors to consider thematic, targeted exposure to reflect these changes.”

Ted Pollak, President of EE Fund Management, the firm behind the index, added: “Video games provide consumers with compelling cost-per-hour entertainment value, and attractive margin opportunities for software developers. The demands for processing and graphics capability motivate semiconductor companies to produce faster and more efficient chips. Platform makers continually improve their systems. Peripheral and component makers enjoy repeat sales of input devices, accessories, and computer parts. New paradigms like virtual reality, free-to play, and game streaming expand opportunities and keep innovation fresh. All this adds up to a dynamic and evolving industry landscape with multiple paths for potential future growth.”

The ETF has been launched in collaboration with white-label ETF providers Factor Advisors, a subsidiary of ETF Managers Group, and ISE ETF Ventures.

Kris Monaco, Head of ISE ETF Ventures, added: “As a supporter of PureFunds SelecTech ETFs and first-to-market ETFs in other diverse industries, ISE ETF Ventures continues to open up emerging technologies and markets that were previously unavailable to investors of all types and sizes.”

Sam Masucci, founder and CEO of ETF Managers Group, commented, “Video game technology has evolved into an important and growing sector within the broader technology industry. This fund marks the 15th ETF in our growing family of client funds.”

As of 9 March 2016, the fund has major country exposures to the United States (54.9%) Japan (30.1%) and France (8.9%). The top holdings in the ETF are Activision Blizzard (9.1%), Square Enix (5.5%) and Gree (5.5%). Other notable inclusions are Ubisoft (5.0%), Electronic Arts (4.7%) and Capcom (4.7%).

The ETF has an expense ratio of 0.75%.

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