New Listing

This NERD thinks video games are 'eSports'

David Tuckwell

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Roundhill Financial, a Delaware-based startup, and Exchange Traded Concepts are listing a new computer games ETF, in what is becoming a popular theme.

The Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) tracks an equal weight index of companies involved in computer games and online entertainment. The index will be provided by Roundhill.

NERD will invest in companies that make their money from computer games. Companies in the index are separated into three categories, based on how much money they make from the sector. The three categories are “Pure-Play”, “Core” and “Non-Core” – progressing from the most involved in video games to the least involved.

Subject to minimal size and liquidity requirements, companies are chosen based on a key-word search of regulatory filings, analyst reports, and industry-specific trade publications. The index will consist of a minimum of 25 components upon each rebalancing.

One imagines, as is often the case with thematic ETFs, that the weightings of each category will be tiered: with pure-plays getting the most weight in the index. Although I cannot see any information on this in the prospectus.

The fund will charge 0.50%.

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