New underlying index seeks to offer
pure-play* exposure to the potential growth of video game
software
NEW
YORK, Sept. 27, 2022 /PRNewswire/
-- Roundhill Investments is pleased to announce several
updates to its NERD ETF, including a new underlying index and fund
name.
Effective at close of business on September 26, 2022, the NERD ETF's name changed
to the Roundhill Video Games ETF, reflecting its revised focus on
pure-play gaming software. Meanwhile, the fund's underlying index
transitioned to the Nasdaq CTA Global Video Games Software Index™
("PLAYR2™"), which offers targeted exposure for investors looking
to invest in the potential growth of video games globally. The
Index is a modified market capitalization weighted index consisting
of companies involved in gaming software development and publishing
across mobile, console, PC, and emerging segments, such as VR and
AR. The Index also excludes video game companies domiciled in
China and Russia, potentially reducing geopolitical
risks to the portfolio.
According to research firm Newzoo, global gaming revenues are
anticipated to grow to $219 billion
by 2024, compounding annually at 8.7% from 2019 to 2024. Based on
current Newzoo estimates, gaming already represents the largest
form of entertainment globally by revenues, surpassing film,
television, and music. Newzoo's research estimates that the gaming
market may continue to expand, with mobile gaming — the largest
segment — anticipated to increase 5.1% year-over-year to
$103.5 billion this year.
Gaming's increasing cultural relevance and continued growth has
led to increased merger and acquisition activity for the industry,
with 12 of the 17 largest gaming transactions occurring since 2020,
including Microsoft's $68.7 billion
January proposal to buy Call of Duty publisher Activision
Blizzard.
As of Monday's close (September 26th,
2022), the NERD ETF's top holdings now include Nintendo
(18.3% weight), Electronic Arts (10.6% weight),
Roblox (6.6% weight), and Take-Two Interactive (6.5%
weight). Nintendo is best known for its Mario and Pokémon
franchises, while EA's Madden and FIFA franchises are the two most
successful in the history of sports simulation. Meanwhile,
according to GamesIndustry.biz, Take-Two's Grand Theft Auto V is
the most profitable entertainment title of all time.
Note: Holdings are subject to change. Click here for a full list
of the fund's holdings.
About Roundhill
Investments:
Roundhill Investments is a U.S.-based investment adviser focused
on developing innovative exchange-traded products. The firm's
product lineup accounts for more than $1
billion in assets under management (as of December 31, 2021). To learn more about the
company, please visit roundhillinvestments.com.
Investors should consider the investment objectives, risk,
charges, and expenses carefully before investing. For a prospectus
or summary prospectus with this and other information about the
NERD ETF please call 1-855-561-5728 or visit the website
https://www.roundhillinvestments.com/etf/nerd/. Read the prospectus
and summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Video game companies face intense competition, both domestically
and internationally, may have limited product lines, markets,
financial resources, or personnel, may have products that face
rapid obsolescence, and are heavily dependent on the protection of
patent and intellectual property rights. Such factors may adversely
affect the profitability and value of video gaming companies.
Investments made in small and mid-capitalization companies may be
more volatile and less liquid due to limited resources or product
lines and more sensitive to economic factors. Fund investments will
be concentrated in an industry or group of industries, and the
value of Fund shares may rise and fall more than more diversified
funds. Foreign investing involves social and political instability,
market illiquidity, exchange-rate fluctuation, high volatility and
limited regulation risks. Emerging markets involve different and
greater risks, as they are smaller, less liquid and more volatile
than more developed countries. Depositary Receipts involve risks
similar to those associated with investments in foreign securities,
but may not provide a return that corresponds precisely with that
of the underlying shares. Please see the prospectus for details of
these and other risks
Roundhill Financial Inc. (d/b/a Roundhill Investments) serves as
the investment advisor to the NERD ETF and other Roundhill ETFs
(collectively, the "Roundhill Funds"). The Roundhill Funds are
distributed by Foreside Fund Services, LLC which is not affiliated
with Roundhill Financial Inc, U.S. Bank or any of their
affiliates.
Nasdaq®, Nasdaq CTA Global Video Games Software
Index™ and PLAYR2™, are trademarks of Nasdaq, Inc. (which with its
affiliates is referred to as the "Corporations") and are licensed
for use by Roundhill Investments. The Product(s) have not
been passed on by the Corporations as to their legality or
suitability. The Product(s) are not issued, endorsed, sold,
or promoted by the Corporations. The Corporations make no
warranties and bear no liability with respect to the
product(s).
Glossary
*Pure-play refers to an investment that is focused on one
specific business strategy, theme, or niche.
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SOURCE Roundhill Investments