VanEck Launches ESPO, ETF Focused on Fast Growing Video Game and eSports Industry
ESPO provides targeted exposure to “the future of sports”: video game and related software developers,
streaming services, companies involved in eSports events, and more
VanEck today announced the launch of the
VanEck Vectors® Video Gaming and eSports ETF (NYSE Arca: ESPO).
“Just a few years ago, talk of sold out stadiums, viewership in the millions, high-profile sponsors, and notable marketing
arrangements would have been centered on football, baseball, basketball or hockey. But today, that talk can just as easily be
applied to the world of video games and eSports,” said Ed Lopez, Head of ETF product at VanEck. “This is the future of sports and a
growth story that is global in scope.”
The video game market is undergoing a period of transformative growth, added Lopez, and is predicted to generate close to $140
billion in revenue in 2018, an increase of more than 13 percent from 2017.1 It’s not just that people are playing
more video games on more platforms; one of the driving factors of growth for the industry has been the emergence of professional
video gaming, or eSports. We anticipate that established video game companies are set to benefit the most with the rise of eSports,
through partnerships, league ownership, sponsorships, franchising, and other marketing arrangements.
“eSports have brought video games out of the rec room and into the stadiums,” continued Lopez. eSports has become one of the
largest spectator sports in the world with games streamed online or on major broadcast outlets like ESPN and at live gaming events
held in stadiums. For example, the League of Legends world finals in 2017 attracted more viewers than the MLB World Series, the NBA
finals, and the NHL Stanley Cup finals.2 In 2018, the global eSports audience is expected to reach 380 million
people.3
“The video game industry is disrupting traditional media and entertainment,” said Lopez, “and with a young and highly engaged
demographic, ESPO provides investors access to what we believe can be a long-term growth story.”
ESPO seeks to track, before fees and expenses, the performance of the MVIS® Global Video Gaming and eSports Index
(MVESPO). The index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of
tracking the overall performance of companies involved in video gaming and eSports. This may include companies developing video
games and related software, streaming services, and/or those involved in eSports events. To be included in the index, companies
must generate at least 50% of their revenues from video gaming or eSports. This allows ESPO to have the highest concentration,
among U.S.-listed ETFs, of pure play names participating in this fast-growing space.
ESPO has a gross expense ratio of 0.60% and a net expense ratio of 0.55%, which is capped contractually until [February 1,
2020.]4
ESPO joins VanEck’s suite of industry-focused equity ETFs, which also includes the
VanEck Vectors Semiconductor ETF (SMH®),
VanEck Vectors Biotech ETF (BBH®),
VanEck Vectors Environmental Services ETF (EVX®),
VanEck Vectors Generic Drugs ETF (GNRX),
VanEck Vectors Pharmaceutical ETF (PPH®),
VanEck Vectors Retail ETF (RTH®), and
VanEck Vectors Gaming ETF (BJK®).
About VanEck
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment
opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone
for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and
exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As
of September 30, 2018, VanEck managed approximately $46.1 billion in assets, including mutual funds, ETFs, and institutional
accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio
diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio
managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and
transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive
strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the
firm’s mission.
Important Disclosures
Indexes are unmanaged and are not securities in which an investment can be made. Index returns do not reflect a deduction for
fees & expenses.
MVIS Global Video Gaming and eSports Index is the exclusive property of MVIS (a wholly owned subsidiary of Van Eck Associates
Corporation), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to
ensure that the Index is calculated correctly. Irrespective of its obligations towards MV Index Solutions GmbH, Solactive AG has no
obligation to point out errors in the Index to third parties. The VanEck Vectors Video Gaming and eSports ETF is not sponsored,
endorsed, sold or promoted by MV Index Solutions GmbH and MV Index Solutions GmbH makes no representation regarding the
advisability of investing in the Fund.
An investment in the Fund may be subject to risks which include, among others, investing in the video gaming and eSports
industry, information technology, equity securities, foreign securities, foreign currency, special risk considerations of investing
in Asian, Japanese and emerging markets issuers, depositary receipts, small- and medium-capitalization companies, cash
transactions, market, operational, index tracking, authorized participant concentration, absence of prior active market, trading
issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and
concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in
economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange
rates which may negatively impact the Fund's returns. Small and medium-capitalization companies may be subject to elevated risks.
The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of
sectors.
Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain
authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only
through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage
expenses when trading fund shares in the secondary market. Past performance is no guarantee of future results.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider
the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a
prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit
vaneck.com. Please read the
prospectus and summary prospectus carefully before investing.
MacMillan Communications
Mike MacMillan/Chris Sullivan, 212-473-4442
chris@macmillancom.com
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