Roundhill Sports Betting & iGaming ETF (BETZ)

ETF Roundhill Sports Betting & iGaming ETF (BETZ) - Summary

Profile:

Roundhill Sports Betting & iGaming ETF is a thematic ETF that invests in companies involved in the global sports betting and iGaming industry. The ETF's primary focus is on companies that operate online sports betting platforms, land-based casinos, and iGaming companies that offer poker, bingo, and other online gambling options. BETZ utilizes a rules-based approach to select its holdings, focusing primarily on mid- and large-cap companies.

Objective:

The ETF's primary investment goal is to track the Roundhill Sports Betting & iGaming Index, which comprises companies in the global sports betting and iGaming industries. This allows investors to gain diversified exposure to the growth potential of this emerging market.

Issuer:

Roundhill Investments is the issuer of BETZ.

Reputation and Reliability:

Roundhill Investments is a relatively new asset management firm founded in 2021. While the firm lacks the extensive experience of more established players, its leadership team boasts significant experience in the financial industry, including expertise in thematic ETFs.

Management:

Roundhill Investments is led by CEO Will Hershey, who has over 20 years of experience in the financial services industry. The management team also includes experienced professionals with backgrounds in investment banking, portfolio management, and index construction.

Market Share:

BETZ is the first mover in the sports betting and iGaming ETF space and currently holds a dominant market share within this niche category.

Total Net Assets:

As of November 9, 2023, BETZ has approximately $144 million in total net assets.

Moat:

BETZ's competitive advantages include its first-mover status, rules-based index methodology, and experienced management team. The ETF also benefits from the strong growth potential of the global sports betting and iGaming market.

Financial Performance:

BETZ has delivered strong returns since its inception in June 2021, significantly outperforming the broader market. However, it is important to note that the ETF is relatively young, and its historical performance may not be indicative of future results.

Benchmark Comparison:

BETZ has outperformed its benchmark index, the S&P 500, since its inception.

Growth Trajectory:

The global sports betting and iGaming market is expected to experience significant growth in the coming years, driven by factors such as increasing legalization and technological advancements. This bodes well for BETZ's future growth potential.

Liquidity:

BETZ has a relatively high average trading volume, which ensures good liquidity for investors looking to buy or sell shares.

Bid-Ask Spread:

The bid-ask spread for BETZ is relatively tight, indicating low transaction costs for investors.

Market Dynamics:

The market dynamics for BETZ are primarily driven by factors affecting the sports betting and iGaming industry, such as regulatory changes, technological advancements, and competition.

Competitors:

There are currently no direct competitors to BETZ in the sports betting and iGaming ETF space. However, other thematic ETFs focusing on related sectors, such as the VanEck Video Gaming and eSports ETF (ESPO), could be considered indirect competitors.

Expense Ratio:

The expense ratio for BETZ is 0.75%, which is considered average for thematic ETFs.

Investment Approach and Strategy:

BETZ uses a passively managed investment approach, tracking the Roundhill Sports Betting & iGaming Index. The ETF invests in a diversified basket of stocks across the sports betting and iGaming industry, including companies involved in online platforms, land-based casinos, and game development.

Key Points:

• First-mover in the sports betting and iGaming ETF space
• Strong growth potential aligned with the expanding industry
• Experienced management team with a proven track record
• High liquidity and relatively low expense ratio

Risks:

• Volatility: The sports betting and iGaming industry is subject to regulatory changes and intense competition, which can impact the ETF's performance.
• Market Risk: BETZ is concentrated in a specific sector, making it more susceptible to market fluctuations within that industry.

Who Should Consider Investing:

Investors who believe in the long-term growth potential of the sports betting and iGaming industry and are comfortable with the associated risks may consider allocating a portion of their portfolio to BETZ.

Fundamental Rating Based on AI:

8/10

BETZ receives a strong rating based on its first-mover status, strong track record, experienced management team, and favorable market outlook. However, its sector-specific focus and inherent volatility represent potential risks for investors to consider.

Resources and Disclaimers:

• https://roundhillinvestments.com/etfs/betz/
• https://finance.yahoo.com/quote/BETZ/
• https://www.cnbc.com/2023/06/21/roundhill-sports-betting-etf-betz-how-to-invest-in-the-booming-industry.html

Disclaimer: I am an AI chatbot and cannot provide financial advice. The information provided above should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.