An exchange-traded fund focused on video game developers has significantly outperformed expectations, rising 90.3 per cent in the year to June 30, although recent figures put the growth at 78 per cent over 12 months. This niche ETF, BetaShares GAME, specialises in the world’s 40 largest video game stocks. BetaShares is an Australian investment firm offering a range of exchange-traded funds (ETFs). The company provides investors with access to diverse investment strategies across various asset classes and sectors.
Despite its impressive returns, GAME holds just $18 million in assets. Cameron Gleeson, a Betashares strategist, highlights the growing significance of gaming and e-sports, noting the ETF’s diversification across the industry. The video game sector has evolved into a multi-billion dollar industry, rivalling the cinema, music and sports markets. Industry leaders include Nintendo, which recently sold 3.5 million copies of its new Nintendo Switch in just four days.
The ETF’s holdings are globally diverse, with a significant presence in Asia. While only five of the tracked stocks are based in the United States, seven are from China, including companies like Tencent, owner of Riot Games, the developer behind the popular game League of Legends. Japan holds the largest share, with 13 developers, including Nintendo, Sony, and Capcom. Analysts are particularly interested in how game developers are monetising intellectual property and leveraging artificial intelligence.
Ron Curry, CEO of the Interactive Games and Entertainment Association, notes the Australian industry’s growth, supported by new tax offsets for developers. These incentives have made Australia a competitive destination for gaming studios, leading to increased investment and business growth in the local sector.
