Online Sports Gambling Etf
Goldman Sachs expects sports betting to become a $28 billion industry and iGaming or online gambling to become a $9.5 billion industry. The Roundhill Sports Betting & iGaming ETF (BETZ), the first. Fund Description and Objective. The Roundhill Sports Betting & iGaming ETF (“BETZ ETF”) is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill Sports Betting & iGaming Index (“BETZ Index”). Now, popular ETF provider VanEck has launched a fund which focuses on the electronic sports (eSports) industry. The VanEck Vectors Video Gaming and eSports ETF is designed to track an index of 25.
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Investors looking for access to the online betting and gaming industry have a new option thanks to a new sector-specific ETF.
The so-called Roundhill Sports Betting & iGaming ETF ($BETZ) launched last Thursday on the New York Stock Exchange. More than $17 million was poured into the ETF on its opening day, according to Bloomberg.
Bloomberg senior ETF analyst EricBalchunas said that figure was likely a record opening for an independent or themed ETF.
Then on Friday, the ETF was the most-added asset among Robin Hood traders.
What’s in $BETZ stock fund?
$BETZ currently includes 30 companies. The top 10 by weight are as follows:| Weight | Name | Ticker | Thematic Relevance | Country |
|---|---|---|---|---|
| 7.02% | DRAFTKINGS INC | DKNG | Sportsbook | United States |
| 6.53% | FLUTTER ENTERTAINMENT PLC | FLTR LN | Sportsbook | Ireland |
| 5.79% | GAN LTD | GAN | Technology | Britain |
| 5.36% | POINTSBET HOLDINGS PTY LTD | PBH AU | Sportsbook | Australia |
| 4.78% | KAMBI GROUP PLC | KAMBI SS | Technology | Malta |
| 4.57% | BETMAKERS TECHONOLGY GROUP LTD | BET AU | Technology | Australia |
| 4.45% | WILLIAM HILL PLC | WMH LN | Sportsbook | Britain |
| 4.16% | PENN NATIONAL GAMING INC | PENN | Casinos | United States |
| 4.12% | KINDRED GROUP PLC | KINDSDB SS | Sportsbook | Malta |
| 3.76% | GVC HOLDINGS PLC | GVC LN | Sportsbook | Isle Of Man |
Holdings are fairly equally split between large-cap, mid-cap and small cap, with US companies making up 28% of the ETF.
US investors are hungry for sports betting
The sports betting sector is growing increasingly popular among US investors. On June 1, DraftKings was the most added stock among Robin Hood users.
Around 80% of the company’s shares are now held by non-institutional investors, helping it to a lofty $13 billion market cap.
GAN too recently enjoyed a very successful US IPO.
“There’s a ton of pent up demand for exposure to sports betting,” Roundhill CEO WillHershey told LSR. “And because the ETF is listed on the New York Stock Exchange, it’s an interesting way for US investors to get exposure to companies listed in the UK and Europe. You saw with GAN how much demand there was for that.”
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Roundhill charges an annual 0.75% fee on investments. The New York firm previously launched an esports-focused ETF (NERD) that is up 28% since its inception a year ago.
“We try and find secular trends in technology that appeal to a younger investor base,” Hershey said. “Timing-wise, it’s good and bad with the crazy run-ups going on. We think actually this is an opportunity for anyone who missed the run-up in DraftKings to buy into a diversified basket with exposure to the betting and gaming industry.”
Roundhill noted in the ETF prospectus that the global gaming market recorded gross gaming revenues (GGR) of $449 billion in 2018. And online was a growing part of that, up to 11.3% in 2018 and rising quickly.
ETFs also on the rise
ETFs are also an increasingly popular option for US investors.
Year to date, net cash flows for ETFs are near $188 billion, according to Douglas Yones, head of exchange-traded products at the New York Stock Exchange.
An ETF tracking US airliners called $JETS for example has seen 66 straight days of inflows, despite wider economic turbulence.
- Roundhill Investments launched a new exchanged-trade fund for online sports betting and casino gaming—called BETZ.
- Roundhill launched an e-sports ETF (NERD) in 2019 that has seen healthy growth.
- ETFs are a great investment opportunity that consolidates many different assets to mitigate risks.
- Both BETZ and NERD are primed for continued growth despite the ongoing coronavirus pandemic.
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NEW YORK – On Thursday, Roundhill Investments launched a new exchanged-trade fund (ETF) for digital sports betting and online casinos. This new ETF is called the Roundhill Sports Betting and iGaming ETF, listed as BETZ on the market.
Roundhill has also offered an esports ETF—listed as NERD— for over a year now; its value has increased by nearly 30% since its inception.
The new sports betting ETF will be tied to an index of sports betting and online gambling-related securities, including DraftKings (DKNG), Penn National Gaming Company (PENN), FanDuel parent company Flutter (FLTR), and more.
It will also include assets from companies that provide tech infrastructure for online gaming.
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Put simply, it will monitor and track the performance of the online casino and sports betting industries, and reward investors based on that performance.
Roundhill’s new ETF comes on the heels of the coronavirus pandemic, which has forced many people around the world to shelter-in-place and has led to an increase in online gambling in certain markets.
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Online gambling and sports betting companies have begun to see their value increase rapidly after a mid-March crash.
Stock prices for many popular gambling companies are higher now than they were pre-pandemic. Roundhill’s new ETF could be a good way for investors to capitalize on that surge.
What Are ETFs?
ETFs are publicly traded investment funds that can be bought and sold on traditional stock exchanges like the New York Stock Exchange (NYSE).
Essentially, they consolidate multiple securities into one tradeable fund. This both streamlines the investment process and reduces risk by spreading liabilities across multiple assets.
In other words, even if one online gambling company sees its stock price crash, BETZ ETF investors can still make money as long asthe overall online gambling industry is performing well.
Of course, there are some caveats to ETFs. Unlike traditional stocks, which allow investors to purchase and sell individual units, ETFs must be bought and sold in blocks of tens of thousands of shares.
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Additionally, only authorized investors can purchase and sell shares, which leaves direct trading of ETF shares inaccessible to the average investor. Instead, normal investors must purchase shares through a broker who charges a commission fee.
Outlook For Sports Betting And Esports ETFs
Here’s how Roundhill’s e-sports ETF (NERD) has performed so far:
- 6-month low price: $12.39 – March 20. 2020
- 6-month high price: $19.04 – May 4, 2020
- 14-day change in price: +$1.32 (7.5%)
- Current price: $18.87
The sports betting ETF only commenced trading on Thursday. Shares opened at $15.60 but spiked to $17.35 on Friday. For the first several days of trading, expect the price to fluctuate pretty wildly.
Overall, the online gambling industry is in a position for continued growth despite the economic hardships caused by COVID-19, so BETZ looks like a solid long-term investment opportunity.
News tags: BETZ Coronavirus COVID-19 ETF NERD New York Stock Exchange NYSE Roundhill BITKRAFT Esports & Digital Entertainment ETF Roundhill Investments Roundhill Sports Betting and iGaming ETF
With a dual background in English and sports performance and business analytics, Carter aims to write stories that both engage and inform the reader. He prides himself on his ability to interweave empirical data and traditional narrative storytelling. When he isn’t keeping readers up to date on the latest sports betting legal news, he’s banging his head against a wall regretting his decision to be a Tampa Bay Buccaneers fan.