Exchange-traded fund (ETF) provider Pacer ETFs is launching a new ETF targeting opportunities in the online gaming, video game and esports industries, the firm announced on Monday. Pacer says it intends to prepare for a “rapid consumer demand for online media and entertainment” through the launch of this new exchange-traded fund.
The Pacer BlueStar Digital Entertainment ETF follows the BlueStar Global Online Gambling, Video Gaming, and eSports Index, launched in late March by MV Index Solutions. The rules-based index consists of globally listed stocks and depositary receipts of companies that derive at least 50% of their revenues from online gambling, video game development, eSports events and streaming services, and related hardware manufacturers, explains a press release.
On Tuesday, financial benchmark solutions provider MV Index Solutions GmbH, which monitors and licenses the MVIS Indices and BlueStar Indexes, announced the licensing of the BlueStar Global Online Gambling, Video Gaming and eSports Index to Pacer Advisors. The index is weighted by free-float market capitalization, and is calculated in USD as a price index, a total return net index, a total return gross index and reviewed on a quarterly basis.
@MVISIndices today announced the licensing of the Bluestar #Global Online Gambling, Video Gaming, and #eSports Index (#BVGOG) to @PacerETFs.
Read more on: https://t.co/mhuk6abtld pic.twitter.com/pUKmXul6hR
“It’s undeniable that consumers across the globe are spending more time consuming media, playing online video games and gambling across generations, and businesses are adapting to improve revenue streams from these trends,” commented Sean O’Hara, president of Pacer ETF Distributors, about the new launch.
The Pacer BlueStar Digital Entertainment ETF is to become a one-stop shop for investors seeking exposure to online casinos, sportsbooks, video game providers and eSports streaming services, Pacer ETFs said in a statement.
“As leaders in the thematic ETF space, we believe a passive, rules-based approach providing online exposure to both online gambling operations and gaming or eSports through one ETF can be beneficial to offer at this time,” added O’Hara. “These industries are flourishing with the help of many tailwinds, which were catalyzed by the COVID-19 pandemic as every generation grew their digital footprint.”
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Holdings will include both hardware and software manufacturers that develop computer and graphics processors, peripherals and consoles. From the adoption of augmented/virtual reality to reduced restrictions on the gambling market, this ETF is “positioned to grow with consumer interest and budding areas of select online industries,” the ETFs provider believes.
Pacer ETFs describes itself as a strategy-driven exchange-traded fund provider, with 42 ETFs and over $12.6 billion in assets under management. It employs a rules-based, passive management approach to track S&P, NASDAQ, FTSE Russell, and Custom Indexes.
“Pacer ETFs has built a solid track record of launching opportune funds that capture trends and shifts in the marketplace,” said Joe Thomson, president and founder of Pacer Financial. “We expect consumers across the board, especially those in Generation Z, to continue spending significant leisure time online. In order to capitalize on this societal trend, we evaluated possible future directions of online activity and believe this ETF could capture them.”
