Gaming ETFs are holding up despite the market chaos. Here's why

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Amid a turbulent market, gaming-related ETFs have managed to hold their own.

Hershey added that on top of stay-at-home trends giving the gaming and streaming sectors a boost, the games industry also has a history of weathering a downturn.

For example in 2008 and 2009, gaming companies actually saw steady or growing cash flow while the recession took down other sectors and the broader economy, he said."Gaming is one of, if not the, cheapest forms of entertainment, and now even more so than 2008 and 2009," given that many games are free to play, Hershey said. "You're talking about a free form of entertainment, even when you're downloading full games.

Hershey said his own ETF, NERD, is down on the year because unlike other gaming and esports ETFs, it focuses exclusively on esports during a time when competitions have been canceled because of the virus outbreak. As a result, Hershey believes that many of the top holdings initially were part of an across-the-board sell-off as investors initially fled the space, though he maintains that many are in a place to bounce back.

 

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Who out of the following doesn’t want video games? A) unemployed b) adults locked down at home c) kids not at school

Gambling always increases as poverty does..

👀 maybebullish

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