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Not Playing Around: Video Game ETF Is On A Tear

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Not Playing Around: Video Game ETF Is On A Tear
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While there is some debate surrounding the future of brick-and-mortar video game retailers, what cannot be argued is the stellar performance of the PureFunds Video Game Tech ETF (NYSE: GAMR).

Gaming Grabs Gains

The PureFunds Video Game Tech ETF follows the EE Fund Video Game Tech Index (GMB), “which tracks thirty-six exchange-listed companies across the globe actively engaged in supporting or utilizing the video gaming industry,” according to PureFunds.

Publishers of video games, makers of related accessories and peripherals, as well as “large conglomerates whose business models actively support the video game, interactive training, or simulation segments” are eligible for inclusion in GAMR and its underlying index.

Got GAMR?

GAMR debuted in March 2016 as the first exchange-traded fund dedicated to video game-related investments. While GAMR can be viewed as a highly focused, niche ETF, there is no arguing with its strong performance. After hitting an all-time high Monday, GAMR is up nearly 29 percent year-to-date. The ETF is higher by 14.2 percent in just a month.

GAMR could also be on the cutting-edge of the video game industry's increasingly digital footprint. Major console makers are experimenting with subscriptions for formats such as PlayStation and Xbox. Earlier this year, Benzinga reported that Microsoft Corporation (NASDAQ: MSFT) announced the launch of its $10 monthly gaming subscription service for Xbox One, called the Xbox Game Pass. This will give console owners access to more than 100 Xbox One and backward compatible games for $9.99 a month.

Holdings And Allocations

GAMR's top 10 holdings include Activision Blizzard Inc. (NASDAQ: ATVI), Take-Two Interactive Software Inc (NASDAQ: TTWO) and Electronic Arts Inc. (NASDAQ: EA). The ETF holds 36 stocks. In addition to Microsoft, GAMR holds blue chip stocks such as Apple Inc. (NASDAQ: AAPL) and Intel Corporation (NASDAQ: INTC).

GAMR is reflective of the large footprint in the video game business owned by the U.S. and Japan as those countries combine for over three-quarters of the ETF's weight. However, China and South Korea add some diversity, combining for 16.7 percent of the fund's roster.

In 2015, the global video game industry had combined sales of $91.5 billion, according to PureFunds data.

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