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For investors seeking momentum, VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 36.5% from its 52-week low price of $31.00/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
ESPO in Focus
This fund offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO charges investors 55 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The video gaming corner of the broad stock market has been an area to watch lately, given the rising demand for video gaming. This is especially true as lockdowns, social distancing and stay-at-home mandates to contain the coronavirus spread have forced people to look for entertainment at home. Video game sales exploded last month to the highest level since March 2008, per the industry-tracking firm NPD Group. Total spending on video game hardware, software and accessories jumped 35% from a year earlier to $1.6 billion. Further, with traditional sport events canceled due to the coronavirus crisis, professional gaming leagues for Call of Duty, CS:GO, League of Legends, and Overwatch are all moving online.
More Gains Ahead?
It seems that ESPO might remain strong given a high weighted alpha of 30.67 but could be a risky choice as depicted by 20-day volatility of 31.16%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.
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Video Game ETF (ESPO) Hits New 52-Week High
For investors seeking momentum, VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 36.5% from its 52-week low price of $31.00/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
ESPO in Focus
This fund offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO charges investors 55 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The video gaming corner of the broad stock market has been an area to watch lately, given the rising demand for video gaming. This is especially true as lockdowns, social distancing and stay-at-home mandates to contain the coronavirus spread have forced people to look for entertainment at home. Video game sales exploded last month to the highest level since March 2008, per the industry-tracking firm NPD Group. Total spending on video game hardware, software and accessories jumped 35% from a year earlier to $1.6 billion. Further, with traditional sport events canceled due to the coronavirus crisis, professional gaming leagues for Call of Duty, CS:GO, League of Legends, and Overwatch are all moving online.
More Gains Ahead?
It seems that ESPO might remain strong given a high weighted alpha of 30.67 but could be a risky choice as depicted by 20-day volatility of 31.16%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>