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New underlying index seeks to offer pure-play* exposure to the potential growth of video game software
NEW YORK, Sept. 27, 2022 /PRNewswire/ -- Roundhill Investments is pleased to announce several updates to its NERD ETF, including a new underlying index and fund name.
Effective at close of business on September 26, 2022, the NERD ETF's name changed to the Roundhill Video Games ETF, reflecting its revised focus on pure-play gaming software. Meanwhile, the fund's underlying index transitioned to the Nasdaq CTA Global Video Games Software Index™ ("PLAYR2™"), which offers targeted exposure for investors looking to invest in the potential growth of video games globally. The Index is a modified market capitalization weighted index consisting of companies involved in gaming software development and publishing across mobile, console, PC, and emerging segments, such as VR and AR. The Index also excludes video game companies domiciled in China and Russia, potentially reducing geopolitical risks to the portfolio.
According to research firm Newzoo, global gaming revenues are anticipated to grow to $219 billion by 2024, compounding annually at 8.7% from 2019 to 2024. Based on current Newzoo estimates, gaming already represents the largest form of entertainment globally by revenues, surpassing film, television, and music. Newzoo's research estimates that the gaming market may continue to expand, with mobile gaming — the largest segment — anticipated to increase 5.1% year-over-year to $103.5 billion this year.
Gaming's increasing cultural relevance and continued growth has led to increased merger and acquisition activity for the industry, with 12 of the 17 largest gaming transactions occurring since 2020, including Microsoft's $68.7 billion January proposal to buy Call of Duty publisher Activision Blizzard.
As of Monday's close (September 26th, 2022), the NERD ETF's top holdings now include Nintendo (18.3% weight), Electronic Arts (10.6% weight), Roblox (6.6% weight), and Take-Two Interactive (6.5% weight). Nintendo is best known for its Mario and Pokémon franchises, while EA's Madden and FIFA franchises are the two most successful in the history of sports simulation. Meanwhile, according to GamesIndustry.biz, Take-Two's Grand Theft Auto V is the most profitable entertainment title of all time.
Note: Holdings are subject to change. Click here for a full list of the fund's holdings.
About Roundhill Investments:Roundhill Investments is a U.S.-based investment adviser focused on developing innovative exchange-traded products. The firm's product lineup accounts for more than $1 billion in assets under management (as of December 31, 2021). To learn more about the company, please visit roundhillinvestments.com.
Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the NERD ETF please call 1-855-561-5728 or visit the website https://www.roundhillinvestments.com/etf/nerd/. Read the prospectus and summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Video game companies face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources, or personnel, may have products that face rapid obsolescence, and are heavily dependent on the protection of patent and intellectual property rights. Such factors may adversely affect the profitability and value of video gaming companies. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks
Roundhill Financial Inc. (d/b/a Roundhill Investments) serves as the investment advisor to the NERD ETF and other Roundhill ETFs (collectively, the "Roundhill Funds"). The Roundhill Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc, U.S. Bank or any of their affiliates.
Nasdaq®, Nasdaq CTA Global Video Games Software Index™ and PLAYR2™, are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Roundhill Investments. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).
Glossary*Pure-play refers to an investment that is focused on one specific business strategy, theme, or niche.
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SOURCE Roundhill Investments