As the gaming industry races towards the $100 billion mark, more and more investors are considering a thematic investment in this booming sector. With practices such as casual gaming, online tournaments and eSports becoming increasingly popular, this sector could continue to grow at an exponential rate. Our InTheGame CopyFund gives you the opportunity to invest in this sector as a whole.
Get a sneak peek on how the gaming industry has evolved from niche to mainstream, and how you can enjoy its combined growth with one click:
Over the past few decades, the gaming industry went from being a $400 million market, occupied mainly by hardcore gamers, to a $99 billion beast that has everyone playing. Revenue sources for the industry have not only increased, but they have also become a lot more diverse, including in-game advertising, downloadable content purchasing and eSports sponsorship to name a few.Thematic investment in the gaming industry made easyWhen eToro launched CopyFunds last year, they aimed to create an investment instrument that would suit the needs of long-term investors. Since CopyFunds are managed by the eToro Investment Committee, investors can rest assured knowing that professionals are working to serve their long-term investment needs. One of the main advantages of these new investment products is that they enable us to provide our clients with thematic investment opportunities in various market sectors.Instead of selecting individual stocks and composing a gaming-based portfolio on your own, InTheGame offers wide exposure to the industry, in one instrument that you can invest in with a click of a button. The CopyFund contains some of the heavy-hitters of the industry and is optimised periodically to ensure maximum efficiency. Moreover, unlike other investment instruments, CopyFunds have no management fees.Methodology
The eToro Investment Committee selects the stocks within the industry that show the most promise as a long-term investment. The weight of each stock within the CopyFund is allocated based on market cap. The CopyFund is rebalanced at least once a year, but the Committee might rebalance it from time to time to add or remove stocks in the portfolio.
InTheGame is designed to provide industry-wide exposure to the gaming industry. Stocks within the fund include well-known brands, such as Sony, NVIDIA and Nintendo.
- NVIDIA – One of the leading CPU and GPU manufacturers in the world. NVIDIA processors can be found in high-end gaming computers, gaming consoles, smartphones and many other computers that require significant processing power.
- Nintendo – Perhaps the most recognisable gaming brand in the world, Nintendo has been around for over a century and brought forth pop culture icons such as Mario and Pokemon.
- Activision – The largest game publisher in the US, Activision has been part of the industry since the 1970s. With licensing rights to blockbuster franchises such as Call of Duty, Crash Bandicoot and Transformers, Activision is constantly creating new games which bring in billions every year.
- EA – Electronic Arts is another prominent game publisher, known for its popular sports simulators, such as FIFA and other successful franchises such as The Sims and Battlefield.
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The gaming market could still expand further. On top of the growth seen in recent years in casual and hardcore gaming, eSports are growing into a league of their own, with top gamers getting paid as well as other professional athletes. But it won’t end there. Virtual reality and augmented reality are expected to become more widespread in the next few years, adding another dimension to the gaming industry and creating exciting new investment opportunities. With so much room to grow and endless new possibilities for this market, the InTheGame CopyFund could be the perfect solution for those looking for a thematic investment in the booming gaming industry.