Less than a year after launching a dedicated sports betting ETF, the team at Roundhill Investments is bringing a new sports ETF to market.
Roundhill MVP: On Wednesday, the Roundhill MVP ETF MVP begins trading as the first ETF designed to invest in professional sports teams and leagues.
"We are excited about the launch of MVP, which will allow everyday investors to own stakes in sports teams they know and love. The professional sports industry had a difficult year in 2020, but we are confident that a successful vaccine rollout will bring fans back to stadiums worldwide," said Roundhill Co-Founder and CEO Will Hershey.
The tailwinds for investing in professional sports include fans returning to stadiums post-pandemic, growth in sports media rights contracts and the scarcity of public pro sports teams, according to Roundhill’s Matias Dorta.
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Holdings: The ETF will own shares of professional sports teams including:
- New York Rangers, owned by Madison Square Garden Sports Corp MSGS
- New York Knicks, owned by Madison Square Garden Sports
- Atlanta Braves, owned by Liberty Braves Group BATRA
- Manchester United MANU
- Borussia Dortmund BORUF
- AS Roma
- Juventus Football Club JVTSF
The ETF will own shares of professional sports league, including:
- Formula One, owned by Liberty Formula One Group FWONA
- World Wrestling Entertainment Inc WWE
Sports media and apparel companies that are included in the ETF are:
- Nike Inc NKE
- Puma
- Adidas ADDYY
- MSG Networks Inc MSGN
Why It’s Important: The new ETF from Roundhill offers pure-play exposure to the sports market. There are only a handful of professional sports teams that are publicly traded. This ETF offers exposure to the growing valuation of sports teams.
“Professional sports teams and leagues are premium, scarce assets that have a strong record of value appreciation,” MVP ETF Partner Joe Pompliano said. “Everyone has the opportunity to be an owner with MVP.”
The ETF also offers exposure to some foreign soccer teams that are not traded on major exchanges. Juventus has soccer star Cristiano Ronaldo on its roster and is one of the most successful teams in Italy.
Borussia Dortmund is a German soccer club that has Erling Haaland on its roster, who is one of the fastest rising soccer superstars. Haaland has helped the performance of the team and also could help the financials with a highly anticipated transfer that could bring in over 150 million Euros to the team, according to Sports Illustrated.
About Roundhill: The introduction of the Roundhill MVP ETF brings the number of ETFs from Roundhill to five. The company has over $650 million in assets under management.
Earlier this week, the company announced the Roundhill Sports Betting & IGaming ETF BETZ surpassed $500 million in assets under management.
“Online sports betting and iGaming has seen accelerated growth during the pandemic,” Hershey said.
Photo credit: Jean-Baptiste Bellet, via Wikimedia Commons
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