The 2023 National Collegiate Athletic Association (“NCAA”) Division I Men’s Basketball Tournament will kick off on Mar 14, spreading “March Madness” among millions of Americans. This is especially true, as the annual event will lead to crazy legal sports betting with increased legalization, pushing up the stocks in this sector.
The champion will be crowned on Apr 3 at NRG Stadium in Houston, TX. Investors should tap the three-week sports betting extravaganza with VanEck Vectors Video Gaming and eSports ETF ESPO, Global X Video Games & Esports ETF HERO, Roundhill Sports Betting & iGaming ETF BETZ, VanEck Vectors Gaming ETF BJK and iBET Sports Betting and Gaming ETF IBET.
Sports betting has never been more accessible to Americans than in recent years, as gambling is now legal in more states and growing in popularity. The legalization of sports betting across the United States has increased significantly since 2019, with online gambling now legal in 33 states and Washington, DC.
According to the American Gaming Association, about one-quarter of all American adults are poised to collectively bet $15.5 billion on this year’s NCAA men’s Division I basketball tournament. A survey reveals that about 68 million American adults will place bets on March Madness this year, with the vast majority — 56.3 million — planning to participate in a bracket contest. About 31 million Americans will place a traditional wager online, with a retail sportsbook, or with a bookie, while another 21.5 million plan to bet casually with friends. The figures represent a significant jump from the 45 million Americans projected to wager $3.1 billion on March Madness last year (read: 4 ETFs to Make The Most of Dollar Strength).
We have highlighted the details of the above-mentioned ETFs:
VanEck Vectors Video Gaming and eSports ETF (ESPO)
VanEck Video Gaming and eSports ETF offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO holds 26 stocks in its basket with a moderate concentration on the top firms. VanEck Video Gaming and eSports ETF is tilted toward American firms, which account for 45.3% of the portfolio, while Japan and China round off the next two with double-digit allocation each.
VanEck Video Gaming and eSports ETF has gathered $270.1 million in its asset base while trading in an average daily volume of 32,000 shares. ESPO charges 56 bps in annual fees from investors.
Global X Video Games & Esports ETF (HERO)
Global X Video Games & Esports ETF offers exposure to companies that develop or publish video games, facilitate streaming and distribution of video gaming or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality. This can be easily done by the Solactive Video Games & Esports Index (read: A Comprehensive Guide to Video Gaming ETFs).
Holding 50 securities in its basket, Global X Video Games & Esports ETF has AUM of $157.6 million and charges 50 bps in annual fees. It trades in an average daily volume of 38,000 shares.
Roundhill Sports Betting & iGaming ETF (BETZ)
Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors global exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. Sportsbook comprises 35.2% share while iGaming, technology, and casino round off the next two spots with a double-digit exposure each.
Roundhill Sports Betting & iGaming ETF holds 41 stocks in its basket and has amassed $132.8 million in its assets base. It charges 75 bps in annual fees and trades in an average daily volume of 29,000 shares.
VanEck Vectors Gaming ETF (BJK)
VanEck Vectors Gaming ETF provides investors with exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. It follows the MVIS Global Gaming Index, holding 36 securities in its basket.
VanEck Vectors Gaming ETF has AUM of $95.8 million and an average daily volume of roughly 21,000 shares. It charges 65 bps in annual fees (read: Consumer Savings at One-Year High: ETFs to Buy).
iBET Sports Betting and Gaming ETF (IBET)
iBET Sports Betting and Gaming ETF is an actively managed offering exposure to the Sports Betting and Gaming industries. It holds 32 stocks in its basket, with each accounting for no more than 7.1% share.
iBET Sports Betting and Gaming ETF has accumulated $1.4 million in its asset base while trading in an average daily volume of 2,000 shares. It charges 79 bps in annual fees.
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