After receiving $1.82 billion of net inflows and generating +80% in returns in a pandemic-ridden 2020, interest in Video Games & iGaming ETFs has faded. In 2021, the range of ETFs only received $76 million from investors and ended the year with a -3.3% performance dip.
This year, the theme is off to a bad start ? witnessing $85 million of net outflows and falling by -6% on average over the past two weeks. VanEck Vectors Video Gaming and eSports ETF (ESPO) bled the most (-$35 million), followed by Global X Video Games & Esports ETF (HERO, -$26 million) and Global X Japan Games & Animation ETF (-$12 million). Performance-wise, Mirae Asset TIGER KRX Game K-New Deal ETF (364990) and Roundhill Sports Betting & iGaming ETF (BETZ) took the biggest hit, losing -18% and -10% respectively over the same period.
The dimmed investor appetite can be attributed to lower gaming consumption as school and outside activities resumed following massive vaccination campaigns and reopenings of economies. Investors have also dumped their gaming shares as their valuation had ballooned to unreasonable levels in their minds. Also to blame is the market?s trauma from last year?s Chinese crackdown on its gaming industry ? which sent NetEase and Tencent, the two biggest gaming companies in China down by -26% and -21% respectively in the third quarter (Q3 2021).
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