The World’s First Video Game Tech ETF (GAMR) Announces Largest Contributors to Q1 2021 Index Performance

SUMMIT, N.J.–(BUSINESS WIRE)–ETF Managers Group LLC (“ETFMG”), the leading thematic ETF issuer behind the first exchange-traded product to target the video game industry, the Wedbush ETFMG Video Game Tech ETF (NYSE Arca: GAMR), is pleased to announce the largest contributors by segment to the GAMR® index performance during the Q1 2021 rebalance. GameStop1, ASUSTeK2, Intel3 and WYSIWYG Studios4 made the largest contributions to Pure-Play, Non-Pure-Play, Conglomerate and Microcap segments respectively.

GAMR®’s index, the EEFund Video Game Tech™ Index, is designed to provide a benchmark for investors interested in tracking companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments. The Index uses a market capitalization weighted allocation across the Pure-Play and Non-Pure-Play sectors and a set weight for the Conglomerate and Microcap sectors, as well as an equal weighted allocation methodology for all components within each sector allocation. GAMR® ended the first quarter of 2021 up 23.09%.

“It was an interesting quarter that proved passive index investing can capture returns no one expects. Nevertheless, we have added an automatic trim feature to the methodology which allows for significant growth of a position, but also helps protect against a single holding dominating the Index between rebalances,” says Ted Pollak, Founder and President of EE Fund Management LLC and ETFMG Video Game Tech Expert. “Of note in this quarter’s top performers is Intel, who recently invested in domestic chip production. This should help protect supply lines for North American gamers in the future.”

“Notwithstanding a loosening of restrictions due to increasing vaccinations and lower infection rates, many companies in the GAMR® ETF reported very strong quarters and provided guidance that calls for growth in 2021,” says Michael Pachter, Managing Director of Equity Research at Wedbush Securities and ETFMG Video Game Tech Expert. “GameStop benefited from a structural defect in the supply and demand for its shares, driving the company’s shares significantly higher and the GAMR® ETF was able to rebalance its portfolio to capitalize on this structural defect.”

For more information on GAMR®, visit: etfmg.com/GAMR.

Performance as of 3/31/21

CUMULATIVE

 

ANNUALIZED

 

 

1 MONTH

 

3 MONTH

 

YTD

 

SINCE

INCEP.

 

 

 

1 YEAR

 

3 YEARS

 

5 YEARS

 

10 YEARS

 

SINCE

INCEP.

 

 

MARKET

PRICE

 

11.01%

 

23.09%

 

23.09%

 

313.65%

 

130.80%

 

27.63%

 

31.01%

 

 

 

32.37%

 

 

NAV

 

10.30%

 

22.13%

 

22.13%

 

310.41%

 

127.24%

 

27.52%

 

30.92%

 

 

 

32.17%

 

 

INDEX

 

10.45%

 

22.30%

 

22.30%

 

316.89%

 

129.94%

 

28.43%

 

31.31%

 

 

 

32.57%

 

 

                       

Inception: 3/8/16 Expense Ratio: 0.75%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data current to the most recent month end may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477). Performance is annualized for periods greater than 1 year.

About ETFMG

ETFMG is an Investment Adviser to exchange-traded funds (ETFs), founded in 2014 with a vision of developing innovative thematic ETFs that provide investors unique exposure to new markets. Today, the ETFMG fund line up provides access to a diverse collection of global themes and is comprised of 75% first to market products. We turn portfolio management strategies into successful ETFs by partnering with market segment experts to bring long-term growth opportunities to investors. ETFMG funds demonstrate the benefits of the ETF wrapper and having thematic products in investors’ portfolios. To learn more about ETFMG and our portfolio of exchange traded funds please visit www.etfmg.com or follow us on LinkedIn, Twitter @ETFMG, Facebook, Instagram and YouTube.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, available on www.etfmg.com. Please read the prospectus carefully before investing. Securities mentioned may be holdings in the fund and are subject to change without notice.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. Video Game Tech 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. Video Game Tech Companies are also subject to increasing regulatory constraints, particularly with respect to cybersecurity and privacy. Such factors may adversely affect the profitability and value of such companies. Investments in foreign securities involve political, economic issues and currency risks, greater volatility and differences in accounting methods. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large capitalization companies. The Fund’s return may not match or achieve a high degree of correlation with the return of the EEFund Video Game Tech Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Diversification does not guarantee a profit, nor does it protect against a loss in a declining market.

The EEFund Video Game Tech™ Index provides a benchmark for investors interested in tracking companies actively involved in the electronic gaming industry including the entertainment, education and simulation segments. The Index uses a market capitalization weighted allocation across the pure play and non-pure play sectors and a set weight for the conglomerate sector as well as an equal weighted allocation methodology for all components within each sector allocation. The index was created and is maintained by EEFund Management. You cannot invest directly in an index.

ETF Managers Group LLC is the investment adviser to the Fund.

The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Wedbush Securities or EEFund Management.

  1. As of 3/31/21, GameStop represented 1.23% of GAMR’s holdings.
  2. As of 3/31/21, ASUSTeK represented .29% of GAMR’s holdings.
  3. As of 3/31/21, Intel represented 1.13% of GAMR’s holdings.
  4. As of 3/31/21, WYSIWYG Studios represented .56% of GAMR’s holdings.

 

Contacts

Deborah Kostroun

Zito Partners (201) 403-8185

[email protected]

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