Investors who want to add the entertainment industry to their portfolio, Casino ETF is the best option. In the following section, we will guide you to the top 10 Casino ETFs to buy in 2021, including a complete Casino ETFs trading guide.
Exchange-Traded Funds are desirable to less experienced investors as it is less costly than the traditional stock market. Among entertainment ETFs, Casino, gaming, gambling, and leisure exchange-traded funds are the best options to choose.
Here’s what to know about Casino ETFs before investing.
What Are Casino ETFs?
Casino ETFs are formed of casino businesses, but it is often difficult to identify them. In Entertainment ETFs, gaming, leisure, gambling, and casinos are grouped as a sub-sector of consumer discretion.
Therefore, Gaming ETFs often invest in gambling casinos, like Las Vegas Sands Corp (LVS). Moreover, Leisure ETFs continually invest in gaming or gambling stocks where the typical investment of Leisure ETFs should be the entertainment industry.
For example, one of the Nasdaq 100 components, VanEck Vectors Gaming ETF (BJK), comprises many casino companies like MGM Resort International and Las Vegas Sands Corp. Moreover, it replicates the price and yield performance of the MVIS Global gaming index that tracks 40 gaming, casino, lottery sports betting, and gaming equipment companies.
How to Trade and Invest In Casino ETFs?
Open a Trading Account
First, you have to open a trading account with a broker by clicking on a specific location. Later on, you have to fill up a form with your name, email address, address, experience, etc.
Choose Casino ETFs
After opening the account, you will see the list of tradable assets on the trading platform. Later on, you have to open the list of ETFs that you are looking for. In that case, you should find Gambling ETFs from the ETF section. After that, you have to fund your account with a suitable payment method and start trading.
Place Your Trade
After getting the suitable Casino ETF, it is time to make the trade. In ETFs trading, you can take both buy and sell positions on an intraday basis. Therefore, identify a reliable trading strategy and apply it to the market with a robust money management system.
Where Can I Trade Casino ETFs?
In Casino ETFs trading, you should open an account in a trading platform that supports Casino ETFs. There are many brokers in the world, but all of them do not invest in ETFs. Therefore, you should find a broker that is regulated and supports ETFs trading.
What is the sign of a reliable broker?
The first sign of a good broker is transparency. A good broker always discloses its trading conditions and drawbacks so that investors can get a better trading decision. Moreover, a good broker always follows all regulatory frameworks to ensure a high-quality trading environment.
Overall, deposit and withdrawal methods, live market analysis, good customer support, and educational resources are signs of a good broker. Based on our study and research, we recommend the top 3 brokers in the below section; where you can start Casino ETFs trading:
Best Casino ETFs to Buy Now
We have prepared the following list of the best 10 Casino ETFs to trade because of their excellent liquidity, historical performance, and the strong team behind them:
- Roundhill Sports Betting & iGaming ETF (BETZ)
- VanEck Vectors Gaming ETF (BJK)
- Consumer Discretionary Select Sector SPDR Fund ETF (XLY)
- VanEck Vectors Video Gaming and eSports ETF (ESPO)
- Global X Video Games & Esports ETF (HERO)
- Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)
- Wedbush ETFMG Video Game Tech ETF (GAMR)
- Invesco Dynamic Leisure and Entertainment ETF (PEJ)
- John Hancock Multifactor Consumer Discretionary ETF (JHMC)
- Vaneck Investments Ltd Vectors Gaming Esports Ucits ETF (ESGB)
Roundhill Sports Betting & iGaming ETF (BETZ)
Roundhill Financial LLC issued Roundhill Sports Betting & iGaming ETF in the category of Consumer Discretionary Equities. This fund includes companies like PointsBet Holdings Ltd. (PBH), DraftKings Inc Class A (DKNG), and Kambi Group plc Class B (KAMBI).
This multi-cap fund has a $315.9 million market value, with an expense ratio of 0.75%.
This ETF showed a decent movement since the inception and potential for further growth in 2021.
VanEck Vectors Gaming ETF (BJK)
VanEck Vectors gaming is another ETF from the Consumer Discretionary sector issued by VanEck. This fund focuses on the global gaming industry, especially on casinos, sports, and Facebook operators. Therefore, it is suitable for investors who seek more significant exposure to the gambling and gaming industry.
The expense ratio of this fund is 0.66% with a market value of $94.6 million. The price of this ETF crashed during the COVID-19 pandemic, but it successfully recovered in the Q4 of 2020. Therefore, you may include it in the top 10 best Casino ETFs for 2021.
Consumer Discretionary Select Sector SPDR Fund ETF (XLY)
Consumer Discretionary Select Sector SPDR Fund is issued by State Street SPDR that focuses on consumer discretionary equity. Among other Gambling ETFs, it has the highest market value of $19.3 Billion, with an expense ratio of 0.13%.
Therefore, if you focus on stability based on market volume, this ETF deserves to be in your basket of the top 10 gambling ETFs of 2021.
VanEck Vectors Video Gaming and eSports ETF (ESPO)
VanEck Vectors Video Gaming and eSports is a part of VanEcks suite. It tracks the performance of fewer than 30 companies from the gaming, eSports development, casinos, and betting sector.
ESPO offers a 0.55% expense ratio with an $839.7 million market volume. Moreover, it offers an annual dividend of 11% with a Y/E of 33.68 that may influence investors to keep it on the list.
Global X Video Games & Esports ETF (HERO)
Global X Video Games & Esports ETF is issued by Global X, focusing on online gaming and casino sectors.
This fund’s current expense ratio is 0.50%, with a monthly average trading volume of 357,164. This ETF already showed a 91% yearly return, and there are more upside potentialities in 2021.
Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)
Roundhill BITKRAFT Esports & Digital Entertainment ETF is issued by Roundhill Financial LLC, focusing on the digital entertainment sector.
The expense ratio of this fund is 0.5%, with 2.7 million issued shares. However, its dividend payout ratio is slower than others at 0.96% but based on price stability is a substantial investment opportunity in 2021.
Wedbush ETFMG Video Game Tech ETF (GAMR)
Wedbush ETFMG Video Game Tech ETF is issued by ETF Managers Group. It has 88 holdings that focus on video games.
This fund’s weighted average market cap is $76.32B, with an expense ratio of 0.75%. Moreover, the P/E ratio is 58.62, and the average daily volume is $2.82M.
Invesco Dynamic Leisure and Entertainment ETF (PEJ)
Invesco Dynamic Leisure and Entertainment ETF tiered with the US leisure and entertainment stocks. PEJ holds 30 companies where most of them are comparatively unfamiliar.
The expense ratio of this fund is 0.66%, and the market volume is $23.35 Billion.
John Hancock Multifactor Consumer Discretionary ETF (JHMC)
John Hancock Multifactor Consumer Discretionary ETF tracks the US consumer discretionary stocks.
It has a market capitalization of $43.47 Million with an expense ratio of 0.40%. It has a great earnings ratio of 79.09 that may remain stable in 2021.
Vaneck Investments Ltd Vectors Gaming Esports Ucits ETF (ESGB)
Vaneck Investments Ltd Vectors Gaming Esports Ucits ETF focuses on eSports and video games with a $839.1 million market volume.
The expense ratio of this ETF is at 0.55%, and it showed a massive 90% gain over last year that may extend in 2021.
Expert Tip on Investing In Casino ETFs
The success in ETFs trading depends on the trader's personality and trading goal regarding the financial market. Moreover, gambling ETFs require an extra effort as most of the key investors are retailers in this sector. Therefore, this sector works well when the economic condition is stable. So, to get the best output, investors should do an extensive analysis of fundamentals and economics. Moreover, there are many risks associated with the market that a trader should consider. The first risk is the market’s uncertainty that a trader can minimize by using a healthy money management system. Overall, a systematic approach in trading is the only way to return from the market successfully.
Why Trade Casino ETFs?
Investing in gambling and gaming ETFs is riskier than traditional investment, such as an S&P 500 index fund. Therefore, investors should keep in mind that gambling ETFs are narrowly focused on the industry, making this sector riskier.
The gambling and gaming industry is directly connected to the consumer discretionary so it is often difficult to show good performance during the weaker economic conditions. Consumers usually spend money on entertainment and travel when the economy is strong. Similarly, they invest less money when the economy is weak. Overall, investors may keep gaming and gambling ETFs in their portfolio if they see a foreseeable future in the economy.
Currently, the COVID-19 pandemic is almost over, while vaccine cure appeared in the first month of 2021, influencing investors to focus on gambling ETFs.
Frequently Asked Questions
The number one Casino ETF depends on economic condition, market capitalization, trading volume, and retail traders’ activity.
Casino ETFs are directly linked to retail investors. Therefore, if the economic condition is strong, then Casino EFTs will be a good investing option.
Most of the investors in Casino ETFs are retail investors.
A share is a unit of stock, while Casino ETFs are a basket of stocks. In Casino ETFs trading, traders can buy and sell the position on an intraday basis.
People invest in entertainment sectors, like Casino ETFs when the country’s economic condition is strong. Therefore, traders should perform a strong fundamental analysis besides following trading strategies.
The total size of the Casino ETF is not available right now.