Reasons To Embrace This Esports ETF Continue Mounting


<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As has been widely documented, these are go-go days for video game equities and the related exchange-traded funds, many of which are also levered to the burgeoning esports industry.” data-reactid=”19″As has been widely documented, these are go-go days for video game equities and the related exchange-traded funds, many of which are also levered to the burgeoning esports industry.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What To Know: Up 60% year to date, the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NYSE: NERD) represents a best of both worlds approach to these high-flying segments.” data-reactid=”20″What To Know: Up 60% year to date, the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NYSE: NERD) represents a best of both worlds approach to these high-flying segments.

As is the case with rival funds in the category, NERD is more than adequately levered to the stay-at-home theme that is boosting sales of video game software and the ETF stands to benefit as the hardware upgrade cycle emerges in advance of the 2020 holiday shopping season.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why It’s Important: However, NERD, more so than many of its rivals, offers investors more esports purity and data confirm that’s an enviable trait.” data-reactid=”22″Why It’s Important: However, NERD, more so than many of its rivals, offers investors more esports purity and data confirm that’s an enviable trait.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“According to its predictions, eSports sponsorship deals will generate at least $636.9 million in 2020,” notes SafeBettingSites.com. “This would mark a Compound Annual Growth Rate (CAGR) of 16.6% and make commercial partnerships the top revenue source for competitive gaming globally.”” data-reactid=”27″“According to its predictions, eSports sponsorship deals will generate at least $636.9 million in 2020,” notes SafeBettingSites.com. “This would mark a Compound Annual Growth Rate (CAGR) of 16.6% and make commercial partnerships the top revenue source for competitive gaming globally.”

The total esports revenue ecosystem will exceed $1 billion this year, but sponsorship rights are the primary driver. At nearly $640 million this year, sponsorship rights will drive more than triple the amount of turnover of media rights at $185.4 million.

The top sources of esports revenue are the aforementioned sponsorship rights, media rights, merchandise and ticket sales, game publisher fees, digital and streaming. Digital is the fastest-growing member of that group.

“It is interesting to note, however, that digital revenues represent the industry’s fastest growing revenue stream. Expected to generate $21.5 million in 2020, the digital revenue is growing at an astounding CAGR of 72.4%,” according to SafeBettingSites.com.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What’s Next: As an industry, esports is attracting some big-name companies as sponsors. For example, Dow components Intel (NASDAQ: INTC) and Nike (NYSE: NKE) plunked down a combined $244 million on sponsorship rights.” data-reactid=”31″What’s Next: As an industry, esports is attracting some big-name companies as sponsors. For example, Dow components Intel (NASDAQ: INTC) and Nike (NYSE: NKE) plunked down a combined $244 million on sponsorship rights.

That figure is…



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