"The VanEck Video Gaming and eSports ETF ( NYSEARCA:ESPO) offers pure exposure to an industry defying traditional entertainment economics. With $405 million in assets and a 0.56% expense ratio, ESPO delivered 28% returns over the past year, outpacing the S&P 500 by nearly 11 percentage points. The fund holds 28 gaming companies, led by Tencent Holdings ( NASDAQ:TCEHY) at 8.1%, Nintendo ( NASDAQ:NTDOY) at 7.6%, and NetEase ( NASDAQ:NTES) at 7.4%. Recent trading shows the ETF consolidating around $105 after hitting $111 in November 2025."
"This matters for ESPO investors because of predictability. Traditional gaming operated on a hit-or-miss cycle where studios lived and died by individual game launches. Live services turn games into platforms with subscription revenue, battle passes, seasonal content drops, and cosmetic purchases that generate income years after initial release."
The VanEck Video Gaming and eSports ETF (ESPO) holds $405 million with a 0.56% expense ratio and 28 gaming company positions, including Tencent, Nintendo, and NetEase as top weights. ESPO returned 28% over the past year, outperforming the S&P 500 by roughly 11 percentage points, and has recently consolidated near $105 after a November 2025 peak. In 2025, over 65% of gaming revenue came from live services and in-game purchases rather than upfront sales, shifting cash flow toward recurring monetization. Live services create subscriptions, battle passes, seasonal content, and cosmetic sales that extend revenue longevity. Monitoring quarterly disclosures that split premium sales and live services revenue in major holdings can reveal improving monetization trends.
Read at 24/7 Wall St.
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