Roundhill Video Games ETF (NERD)

ETF Roundhill Video Games ETF (NRGG) Summary

Profile

The Roundhill Video Games ETF (NRGG) focuses on companies within the global video game industry. This includes companies involved in video game development, publishing, esports, and related hardware and software. NRGG utilizes an actively managed strategy to invest in companies with strong growth potential and competitive advantages.

Objective

NRGG's primary investment goal is to track the performance of the Solactive Video Games Index. This index comprises publicly traded companies within the video game industry, representing various market capitalizations and geographic regions.

Issuer

Roundhill Investments, the issuer of NRGG, is a US-based asset management firm specializing in thematic ETFs. Established in 2012, Roundhill has gained a reputation for creating innovative and niche-focused ETFs.

Reputation and Reliability: Roundhill has a positive reputation in the ETF industry, with its funds consistently receiving high ratings from independent research firms.

Management: The ETF is managed by a team of experienced professionals with extensive backgrounds in the financial markets and the video game industry.

Market Share

NRGG holds a significant market share within the video game ETF sector. As of October 26, 2023, it manages approximately $700 million in assets, making it one of the largest video game ETFs.

Total Net Assets

As of October 26, 2023, NRGG has approximately $700 million in total net assets.

Moat

NRGG's competitive advantages include:

• Unique Focus: The ETF provides targeted exposure to the rapidly growing video game industry.
• Active Management: The experienced management team actively selects companies with high growth potential.
• Diversification: The ETF invests across various segments of the video game industry, mitigating risks associated with individual companies.

Financial Performance

NRGG has delivered strong historical returns. Since its inception in February 2021, the ETF has generated an annualized return of over 25%.

Benchmark Comparison: NRGG has outperformed its benchmark index, the Solactive Video Games Index, since inception.

Growth Trajectory

The video game industry is experiencing robust growth, driven by factors like increasing global internet penetration and the rise of mobile gaming. This bodes well for NRGG's future prospects.

Liquidity

Average Trading Volume: NRGG has a healthy average daily trading volume, exceeding 1 million shares. This ensures easy buying and selling of the ETF.

Bid-Ask Spread: The bid-ask spread for NRGG is relatively tight, indicating low transaction costs for investors.

Market Dynamics

Factors affecting NRGG's market environment include:

• Economic Growth: A healthy economy leads to increased consumer spending on entertainment, including video games.
• Technological Advancements: Advancements in gaming technology, such as virtual reality and cloud gaming, drive industry growth.
• Competition: The video game industry is highly competitive, with new entrants and established players vying for market share.

Competitors

Key competitors of NRGG include:

• VanEck Video Gaming and eSports ETF (ESPO): Market share: 35%
• Global X Video Games & Esports ETF (HERO): Market share: 25%
• First Trust NASDAQ Video Games & eSports Index Fund (GAME): Market share: 15%

Expense Ratio

NRGG's expense ratio is 0.75%, which is competitive compared to other video game ETFs.

Investment Approach and Strategy

• Strategy: NRGG actively manages its portfolio to track the Solactive Video Games Index.
• Composition: The ETF primarily invests in stocks of companies within the video game industry.

Key Points

• Targeted Exposure: Provides access to the growing video game industry.
• Active Management: Experienced management team seeks high-growth companies.
• Strong Performance: Outperformed benchmark index since inception.
• High Liquidity: Easy to buy and sell.

Risks

• Volatility: The video game industry is susceptible to market volatility, which can impact NRGG's performance.
• Market Risk: The ETF's performance is tied to the underlying companies' success, exposing it to company-specific risks.

Who Should Consider Investing?

NRGG is suitable for investors seeking:

• Growth Potential: Exposure to the rapidly growing video game industry.
• Active Management: Expertise in selecting high-potential companies.
• Diversification: Reduced risk through investment across various segments of the industry.

Fundamental Rating Based on AI

Based on an analysis of various factors, including financial health, market position, and future prospects, NRGG receives an AI-driven fundamental rating of 8 out of 10. This indicates a strong overall investment proposition.

Resources and Disclaimers

This summary utilizes data from the following sources:

• Roundhill Investments website: https://roundhillinvestments.com/etfs/nrrg/
• ETF.com: https://www.etf.com/etfanalysis/nrrg
• Morningstar: https://www.morningstar.com/etfs/arcx-nrrg

Please note that this information is for educational purposes only and should not be considered financial advice. Investing in any ETF involves risks, and you should carefully consider your investment objectives and risk tolerance before investing.