It’s Game On for Video Game ETFs
The biggest video game ETFs are outperforming the broader market, with many up at least 15% year-to-date.
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The biggest video game ETFs are outperforming the broader market, with many up at least 15% year-to-date, riding a surge of new title announcements, tech advances, and expanding consumer adoption. While still off many financial advisors’ radars, the sheer size and momentum of the gaming industry are becoming hard to overlook.
“Video games remain a low-cost, high-engagement form of entertainment, even during macroeconomic uncertainty,” said Nick Frasse, a product manager at VanEck, which runs the VanEck Video Gaming and eSports ETF (ESPO).
Playing with Power
Several high-profile launches are driving anticipation and investment. The Nintendo Switch 2 drops next month, with the company aiming to sell 15 million units by March 2026. Its predecessor sold over 152 million. Rockstar’s GTA VI is set for release in May 2026 — a decade after the game series’ last entry, which sold 215 million copies. (That’s about two-thirds the US population.)
“We hear about two types of clients,” said Nate Miller, VP of product development at Amplify ETFs, which runs the Amplify Video Game Leaders ETF (GAMR). One is parents of gamers, who recognize the “excitement, hours played, and transactions that occur on in-game spending,” he said. The others are active gamers who see long-term growth potential and like the idea of owning a basket of industry leaders.
Industry sales have also been climbing steadily over the past decade. US video game revenue hit almost $60 billion in 2024, a 106% increase from 2014, per the Entertainment Software Association. “Advancements in virtual reality, augmented reality, and cloud gaming are revolutionizing the experience,” said Dave Mazza, CEO of Roundhill Investments, adding that these innovations are broadening the player base and deepening engagement.
All of it is good news for video game ETFs in 2025. Year-to-date:
- Global X Video Games & Esports ETF (HERO) is up nearly 25%.
- VanEck Video Gaming and eSports ETF (ESPO) is up 20%.
- Roundhill Video Game ETF (NERD) is up 20%.
- Amplify Video Game Leaders ETF (GAMR) is up 17%.
Play Again? This marks a turnaround for the industry, which suffered a post-pandemic malaise after everyone was finally able to leave their homes again. Rapid yet unsustainable expansion during the pandemic gave way to massive layoffs and even studio closures. Last year, one in 10 game developers lost their jobs, per a Game Developers Conference survey.
“Many video game stocks have lagged the broader market over the last several years, so there is a bit of ‘catching up’ that may be occurring,” Amplify’s Miller told ETF Upside.
