Why it might be time to put the ESPO ETF to your watchlist

If you’re on the hunt for exposure to the International shares sector, it could be worth adding the VanEck Video Gaming and eSports ETF (ASX: ESPO) to your ASX watchlist. Let’s take a closer look at this VanEck ETF.

What is the ESPO ETF used for?

The ESPO ETF invests in the world’s largest companies involved in global video game development, eSports, related hardware, and software by aiming to track the performance of the MVIS Global Video Gaming and eSports Index.
If an investor is bullish on the gaming sector, the ESPO ETF could form part of a tactical allocation. It offers unique exposure to the world’s largest companies, in addition to the added benefit of geographic diversification.

Keep an eye on FUM

The VanEck ESPO ETF had $108.02 million of money invested when we last pulled the monthly numbers. Given ESPO’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.

Fees and costs for investors

VanEck charges investors a yearly management fee of 0.55% for the ESPO ETF. This means that if you invested $2,000 in ESPO for a full year, you could expect to pay management fees of around $11.00.

For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Summary

These are just some of the considerations or factors you would need to look at when weighing up the ESPO ETF. Before doing anything, take a look at our VanEck ESPO report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.

So how can you actually invest in the ESPO ETF? In the month of May 2022, you can buy the ESPO ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy ESPO for free click here to go to Pearler and sign up (hint: it’s also free to get an account).

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