VanEck Launches ESPO, ETF Focused on Fast Growing Video Game and eSports Industry

ESPO provides targeted exposure to “the future of sports”: video game
and related software developers, streaming services, companies involved
in eSports events, and more

NEW YORK–(BUSINESS WIRE)–VanEck
today announced the launch of the VanEck
Vectors® Video Gaming and eSports ETF (NYSE Arca: ESPO)
.

Just a few years ago, talk of sold out stadiums, viewership in the
millions, high-profile sponsors, and notable marketing arrangements
would have been centered on football, baseball, basketball or hockey.
But today, that talk can just as easily be applied to the world of video
games and eSports,” said Ed Lopez, Head of ETF product at VanEck. “This
is the future of sports and a growth story that is global in scope.”

The video game market is undergoing a period of transformative growth,
added Lopez, and is predicted to generate close to $140 billion in
revenue in 2018, an increase of more than 13 percent from 2017.1 It’s
not just that people are playing more video games on more platforms; one
of the driving factors of growth for the industry has been the emergence
of professional video gaming, or eSports. We anticipate that established
video game companies are set to benefit the most with the rise of
eSports, through partnerships, league ownership, sponsorships,
franchising, and other marketing arrangements.

eSports have brought video games out of the rec room and into the
stadiums,” continued Lopez. eSports has become one of the largest
spectator sports in the world with games streamed online or on major
broadcast outlets like ESPN and at live gaming events held in stadiums.
For example, the League of Legends world finals in 2017 attracted more
viewers than the MLB World Series, the NBA finals, and the NHL Stanley
Cup finals.2 In 2018, the global eSports audience is expected
to reach 380 million people.3

The video game industry is disrupting traditional media and
entertainment,” said Lopez, “and with a young and highly engaged
demographic, ESPO provides investors access to what we believe can be a
long-term growth story.”

ESPO seeks to track, before fees and expenses, the performance of the
MVIS® Global Video Gaming and eSports Index (MVESPO). The
index is a rules-based, modified capitalization weighted, float adjusted
index intended to give investors a means of tracking the overall
performance of companies involved in video gaming and eSports. This may
include companies developing video games and related software, streaming
services, and/or those involved in eSports events. To be included in the
index, companies must generate at least 50% of their revenues from video
gaming or eSports. This allows ESPO to have the highest concentration,
among U.S.-listed ETFs, of pure play names participating in this
fast-growing space.

ESPO has a gross expense ratio of 0.60% and a net expense ratio of
0.55%, which is capped contractually until [February 1, 2020.]4

ESPO joins VanEck’s suite of industry-focused equity ETFs, which also
includes the VanEck
Vectors Semiconductor ETF (SMH®)
, VanEck
Vectors Biotech ETF (BBH®)
, VanEck
Vectors Environmental Services ETF (EVX®)
, VanEck
Vectors Generic Drugs ETF (GNRX)
, VanEck
Vectors Pharmaceutical ETF (PPH®)
, VanEck
Vectors Retail ETF (RTH®)
, and VanEck
Vectors Gaming ETF (BJK®)
.

About VanEck

VanEck has a history of looking beyond the financial markets to identify
trends that are likely to create impactful investment opportunities. We
were one of the first U.S. asset managers to offer investors access to
international markets. This set the tone for the firm’s drive to
identify asset classes and trends – including gold investing in 1968,
emerging markets in 1993, and exchange traded funds in 2006 – that
subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling
exposures supported by well-designed investment processes. As of
September 30, 2018, VanEck managed approximately $46.1 billion in
assets, including mutual funds, ETFs, and institutional accounts. The
firm’s capabilities range from core investment opportunities to more
specialized exposures to enhance portfolio diversification. Our actively
managed strategies are fueled by in-depth, bottom-up research and
security selection from portfolio managers with direct experience in the
sectors and regions in which they invest. Investability, liquidity,
diversity, and transparency are key to the experienced decision-making
around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all
market environments, has been at the heart of the firm’s mission.

Important Disclosures

Indexes are unmanaged and are not securities in which an investment can
be made. Index returns do not reflect a deduction for fees & expenses.

MVIS Global Video Gaming and eSports Index is the exclusive property of
MVIS (a wholly owned subsidiary of Van Eck Associates Corporation),
which has contracted with Solactive AG to maintain and calculate the
Index. Solactive AG uses its best efforts to ensure that the Index is
calculated correctly. Irrespective of its obligations towards MV Index
Solutions GmbH, Solactive AG has no obligation to point out errors in
the Index to third parties. The VanEck Vectors Video Gaming and eSports
ETF is not sponsored, endorsed, sold or promoted by MV Index Solutions
GmbH and MV Index Solutions GmbH makes no representation regarding the
advisability of investing in the Fund.

An investment in the Fund may be subject to risks which include, among
others, investing in the video gaming and eSports industry, information
technology, equity securities, foreign securities, foreign currency,
special risk considerations of investing in Asian, Japanese and emerging
markets issuers, depositary receipts, small- and medium-capitalization
companies, cash transactions, market, operational, index tracking,
authorized participant concentration, absence of prior active market,
trading issues, passive management, fund shares trading,
premium/discount risk and liquidity of fund shares, non-diversified, and
concentration risks, all of which may adversely affect the Fund. Foreign
investments are subject to risks, which include changes in economic and
political conditions, foreign currency fluctuations, changes in foreign
regulations, and changes in currency exchange rates which may negatively
impact the Fund’s returns. Small and medium-capitalization companies may
be subject to elevated risks. The Fund’s assets may be concentrated in a
particular sector and may be subject to more risk than investments in a
diverse group of sectors.

Fund shares are not individually redeemable and will be issued and
redeemed at their net asset value (NAV) only through certain authorized
broker-dealers in large, specified blocks of shares called “creation
units” and otherwise can be bought and sold only through exchange
trading. Shares may trade at a premium or discount to their NAV in the
secondary market. You will incur brokerage expenses when trading fund
shares in the secondary market. Past performance is no guarantee of
future results.

Investing involves substantial risk and high volatility, including
possible loss of principal. An investor should consider the investment
objective, risks, charges and expenses of the Fund carefully before
investing. To obtain a
prospectus
and summary prospectus
, which contains this and other
information, call 800.826.2333 or visit
vaneck.com.
Please read the
prospectus
and summary prospectus
carefully before investing.

____________________

1 Source: Newzoo
2018 Global Games Market Report

2 Source: https://dotesports.com/league-of-legends/news/lol-worlds-final-viewership-18796
and http://www.sportsmediawatch.com/2018/01/top-sports-audiences-2017-nfl/

3 Source: Newzoo,
2/28/18: Global Esports Economy Will Reach $905.6 Million in 2018
as Brand Investment Grows by 48%

4 Cap excludes acquired fund fees and expenses,
interest, trading, taxes, and extraordinary expenses.

 

Contacts

MacMillan Communications
Mike MacMillan/Chris Sullivan, 212-473-4442
chris@macmillancom.com

leverton

I have been involved with publishing and marketing for the past 32 years. My passion is helping people share their voice. I am able to do this through two important venues: One, with Area-Info.net where people can share everything from opinions to events to news. It is your choice! What do you want to share? Two, through a new program called America's Real Deal I am involved with to help business owners get their voice heard.I schedule speaking engagements with community groups and business groups to share my passion about the importance of "sharing your voice".Contact me directly at lee@leeeverton.coom for scheduling information.