ESPO ETF

It is football season. One derivative of the return of the most popular American sport is gamers' renewed focus on popular video game franchises.

The thematic ETF has had an up and down life. Many an ETF investor can name their favorite thematic strategy, and certainly, the space includes some eclectic options.

The best Esports stocks are booming as the sector pounced on robust momentum. The sector is hitting its stride again after slumping post-pandemic.

Video game stocks have been performing well this year, with the VanEck Video Gaming and eSports ETF (ESPO) gaining 11.53% year-to-date as of May 10, outperforming broader market and technology indices.

VanEck Video Gaming and eSports ETF (ESPO) has seen strong performance due to its holdings in superstar stocks like Nvidia and Advanced Micro Devices. The ETF is benefiting from the momentum in the gaming and esports industries, with a high expected earnings growth rate. ESPO offers exposure to the unique and growing gaming/esports sector, with projections showing significant revenue growth in the streaming and esports markets.

From an investing perspective, the gaming sector is a relatively new place to explore. Gaming trends are positive in general. The VanEck Video Gaming and eSports ETF is discussed as an alternative for investing in the gaming space.

The United States witnessed a substantial economic growth in the third quarter of 2023, with the real gross domestic product growing at an annual rate of 4.9%, beating the economists' expectations of 4.7%.

A new report from venture capital firm Konvoy, as quoted on CNBC, reveals that publicly listed gaming companies are holding a substantial $45 billion in cash and cash equivalents.

The VanEck Video Gaming and eSports ETF lacks diversification and major players in the gaming sector such as Meta, Google, Microsoft, and Apple. The growth drivers are not as strong as they seem. As of now the ETF valuation is unjustified so, in the current macro environment, it presents a good selling opportunity.