First Trust S-Network Streaming & Gaming ETF (BNGE)

Overview

First Trust S-Network Streaming & Gaming ETF (BNGE) seeks investment results that correspond generally to the price and yield of the S-Network Streaming & Gaming Index. The fund invests in companies involved in streaming and gaming industries.

Reputation and Reliability

First Trust is a well-established ETF issuer with a solid reputation and a wide range of investment products.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing ETFs and has a dedicated team focused on thematic investing.

Goal

To provide investment results that generally correspond to the price and yield, before fees and expenses, of the S-Network Streaming & Gaming Index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the S-Network Streaming & Gaming Index.

Composition The ETF primarily holds stocks of companies involved in the streaming and gaming industries. There are usually around 50 holdings.

Market Share: BNGE holds a relatively small market share within the broader technology ETF space.

Total Net Assets (AUM): 21690000

Key Competitors

• Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)
• VanEck Video Gaming and eSports ETF (ESPO)
• Global X Video Games & Esports ETF (HERO)

Competitive Landscape

The competitive landscape is fragmented, with several ETFs targeting the gaming and streaming sectors. BNGE faces competition from larger, more established ETFs. BNGE's smaller AUM and potentially different index methodology could lead to performance variations compared to its competitors. ESPO and HERO tend to be more popular, likely due to longer track records and larger asset bases. NERD also has good trading volumes and is a key competitor.

Historical Performance: Historical performance data is readily available from various financial data providers. Investors should consult these sources for specific return figures over different time periods.

Benchmark Comparison: The ETF's performance should be compared to the S-Network Streaming & Gaming Index to assess its tracking efficiency. Investors can review factsheet in firsttrust.com.

Expense Ratio: 0.7

Average Trading Volume

The ETF's average trading volume is moderate, which may affect the ease of buying and selling shares. The average trading volume is around 3,000 as of late 2024.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions, but it is generally reasonable for this ETF. The bid-ask spread is typically around 0.26% as of late 2024.

Market Environment Factors

The growth of the streaming and gaming industries, technological advancements, and consumer spending patterns significantly impact the ETF's performance.

Growth Trajectory

The ETF's growth trajectory is closely tied to the expansion of the streaming and gaming markets. Changes in consumer preferences or technological disruptions could influence its holdings and strategy.

Competitive Edge

BNGE provides targeted exposure to the streaming and gaming industries, offering a concentrated investment in this specific sector. The fund differentiates itself through its index selection, which focuses on companies directly involved in streaming and gaming rather than broader technology companies. This focused approach allows investors to capture the growth potential of these specific segments. The fund could appeal to those seeking a more concentrated exposure than broader tech ETFs, although this also comes with increased sector-specific risk.

Volatility

The ETF's volatility is expected to be relatively high due to its concentrated exposure to the streaming and gaming sectors.

Market Risk

Specific risks include competition within the streaming and gaming industries, changes in consumer preferences, and technological obsolescence.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to the streaming and gaming sectors and is comfortable with a higher level of risk.

Market Risk

The ETF is more suitable for investors with a long-term investment horizon and a higher risk tolerance.

First Trust S-Network Streaming & Gaming ETF (BNGE) offers targeted exposure to the rapidly growing streaming and gaming industries. While it provides a focused investment opportunity, it also carries higher risk due to its concentrated sector allocation. Its performance is directly linked to the success and growth of the underlying industries. Investors should carefully consider their risk tolerance and investment objectives before investing in this ETF. BNGE is not the largest gaming ETF with AUM under $25M; ESPO has 174M AUM.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results.