Top Entertaining ETFs That You Need to Know in 2021
Exchange-traded funds (ETFs) have become increasingly popular among investors in recent years for various reasons. They offer diversification, lower fees, and flexibility for investors. However, beyond the traditional asset classes like stocks, bonds, and commodities, there are a variety of ETFs available that provide investors with more specialized exposure to different areas of the market, such as entertainment. In this article, we’ll explore the top entertaining ETFs that you need to know in 2021.
What are Entertainment ETFs?
Entertainment ETFs invest primarily in companies that operate in the media and entertainment industries. This includes areas like movies, television, music, sports, gaming, and more. These ETFs provide investors with the opportunity to access a diversified portfolio of stocks that are involved in the entertainment sector. Some entertainment ETFs invest in specific areas like only gaming or sports, while others provide a broader exposure to the entire entertainment industry.
The Top Entertaining ETFs to Watch in 2021
1. VanEck Vectors Video Gaming and eSports ETF (ESPO)
The VanEck Vectors Video Gaming and eSports ETF is one of the best ways for investors to gain exposure to the booming gaming industry. ESPO tracks the performance of the MVIS Global Video Gaming and eSports Index, which includes companies involved in the video gaming and eSports industries. Some of the top holdings include Tencent, Nvidia, and Nintendo. ESPO is up over 100% in the past year, making it an enticing option for investors.
2. Global X Video Games & Esports ETF (HERO)
Another option for investors looking to gain exposure to the video gaming and eSports industry is the Global X Video Games & Esports ETF. HERO tracks the performance of the Solactive Video Games & Esports Index, which includes companies focused on video games and eSports services. Some of the top holdings include Electronic Arts, Activision Blizzard, and Sea. HERO has also shown strong performance in the past year, up over 80%.
3. Roundhill Sports Betting & iGaming ETF (BETZ)
Sports betting and iGaming have seen tremendous growth in recent years due to the rise of online sports betting and gaming. The Roundhill Sports Betting & iGaming ETF provides investors with exposure to companies involved in the sports betting and iGaming industries. Some of the top holdings include DraftKings, Flutter Entertainment, and Penn National Gaming. BETZ has shown impressive performance in the past year, up over 70%.
Conclusion
Investing in entertainment ETFs can provide investors with access to companies involved in the media and entertainment industries. The above-mentioned ETFs offer investors a diversified portfolio of stocks involved in specific areas like gaming, sports betting, and more. As always, investors should do their due diligence before investing in any ETF and consider their investment goals, time horizon, and risk tolerance. With the growing popularity of the entertainment industry in recent years, these ETFs may provide investors with the opportunity to capitalize on a flourishing market.
