Zinger Key Points
- The VanEck Gaming ETF and the Roundhill Sports Betting & iGaming ETF outperformed S&P 500 by 10% and 6%, respectively.
- Draftking Inc. has been the biggest year-to-date gainer among gaming stocks.
The first four months of 2023 proved to be very positive for gambling stocks.
Two of the most popular ETFs that invest in companies operating in the gambling industry have both outperformed the SPDR S&P 500 ETF Trust SPY, which replicates the S&P 500 Index.
As of this writing, the VanEck Gaming ETF BJK has outperformed the SPY by nearly 10% year-to-date, whereas the Roundhill Sports Betting & iGaming ETF BETZ has gained 6% more than the SPY in the same period.
For more on the sports betting landscape and what could be next for popular betting segments and legislation, tune in to the Benzinga Sports Betting Titans virtual event on May 24.
Chart: Sport Betting ETFs Fared Better Than The Broader U.S. Stock Market In 2023
VanEck Gaming ETF vs. Roundhill Sports Betting & iGaming ETF: Key Differences
VanEck Gaming ETF
- This ETF, which trades under the symbol BJK, is managed by Van Eck Associates Corporation and is designed to track the performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology, and gaming equipment.
- To be included in the fund, companies must derive at least 50% of their revenue from gaming.
- The fund invests at least 80% of its entire assets in stocks from the MVIS® Global Gaming Index.
- Companies situated in the United States presently account for 45% of total holdings. The United Kingdom is the second most represented nation in the portfolio, accounting for 12% of the total.
BJK's top three holdings are Flutter Entertainment plc PDYPY (8.60%), Las Vegas Sands Corp. LVS (7.64%), and Vici Properties Inc. VICI (6.64%). -
Asset under management: $96 million
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Total expense ratio: 0.62%
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1-year total return: 23.31%
Read also: Las Vegas Sands Stock Trades Higher After Hours On 'Robust Recovery' In Travel, Gaming
Roundhill Sports Betting & iGaming ETF
- This ETF, which trades under the symbol BETZ, was launched by Listed Funds Trust and is managed by Exchange Traded Concepts, LLC and Roundhill Financial Inc.
- The fund invests in firms that operate in the consumer discretionary, consumer services, hotels, restaurants, and leisure, casinos and gaming, casinos, gaming operations, and internet gaming operations sectors.
- At least 80% of the fund's net assets must be invested in securities issued by Sports Betting and iGaming companies.
- U.S.-based gaming companies currently account for 40% of total holdings in terms of regional representation. The United Kingdom comes in second with a 16% weight in the portfolio.
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BETZ's top three holdings are Draftkings Inc. DKNG (8.08%), Flutter Entertainment plc. (7%) and PENN Entertainment Inc PENN (5.33%).
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Asset under management: $139 million
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Total expense ratio: 0.75%
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1-year total return: -7.2%
Best-Performing Gaming Stocks Year To Date
| Stock | Ticker | Tot. Return YTD |
|---|---|---|
| Draftkings Inc. | DKNG | 86.2% |
| Flutter Entertainment plc | PDYPY | 39.9% |
| Wynn Resorts, ltd | WYNN | 35.2% |
| Las Vegas Sands Corp. | LVS | 31.3% |
| MGM Resorts International | MGM | 30.2% |
| International Game Technology | IGT | 26.3% |
Read also: Video Game CEO Who Challenged Apple Gives His Best Advice
Photo: Shutterstock
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