Profiting Off Gaming Just Got Easier

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

(Note: Fifth in a series of ETF Talks on the Millennial generation).

Esports not only allow video game enthusiasts a chance to compete against each other, they have become so popular they also now offer an investment opportunity.

Wall Street has taken notice and is providing a way to seek profits from the fast-growing trend by creating the ETFMG Video Game Tech ETF (NYSE: GAMR), one of a few millennial-based exchange-traded funds that have been launched to ride the wave. Esports events are filling arenas that are normally used for professional basketball, as ironic as that seems, and certain tournaments even are broadcast on major cable networks.

There are more than 90 million millennials — people who were born approximately between 1980 and 2000 — representing about 35% of the labor force today and an expected 75% of U.S. workers by 2030, according to Global X. So, the market is huge.

The age demographic of millennials recently replaced Baby Boomers as the largest in the United States. Investment firms have zeroed in on catering to millennials by studying their spending patterns, their gaming habits and other characteristics more than any other group. Additionally, millennials are making more money now than ever as the oldest ones have reached their late 30s. They’re also expected to receive $30 trillion in wealth from Baby Boomers.

GAMR’s top 10 holdings, which comprise 28.95% of its total assets, include major blue-chip names in the gaming industry such as Nintendo (OTC: NTDOY) and Electronics Arts (NASDAQ: EA), which is more commonly known as EA. If you don’t know these names, don’t worry. Trust me, they’re the most-recognizable stocks in the gaming industry.

Exclusive  How These Three Small Providers Harvest the Commodities ETF Space

Others holdings in the fund include: Square Enix Holdings (9864), 3.58%; Activision Blizzard Inc., (ATVI), 3.07%; CD Projekt SA (CDR), 3%; Micro-AStar International co. (2377.TW), 2.96%; Capcom Co. Ltd. (9697), 2.93%; NCsoft Corp. (036570.KS), 2.78%; Bilibili Inc. ADR (BILI), 2.76%; Take-Two Interactive Software Inc. (TTWO), 2.72%; Electronics Arts Inc., 2.59%; and Nintendo Co. Ltd. (7974), 2.56%.

Chart courtesy of www.StockCharts.com

As you can see in the chart here, GAMR’s share price is up about 10% so far this year. After its investors received the company’s most recent dividend of $0.13 on Sept. 20, GAMR’s forward dividend yield equals about 1.55%.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Jim Woods reminds us of what we have to be thankful for and why we should be thankful for it. He then states what he is thankful for.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE