Roundhill's 'MVP' Targets Pro Sports

Today, Roundhill Investments launched an ETF that targets professional sports teams and leagues. The Roundhill MVP ETF (MVP) also extends its coverage to companies offering sports-related facilities, media, apparel and equipment.

MVP comes with an expense ratio of 0.75% and lists on the NYSE Arca.

"Professional sports teams and leagues are premium, scarce assets that have a strong record of value appreciation," said Joe Pompliano, MVP ETF partner, and founder of sports business media brand Huddle Up, outlining the investment argument for the fund.

And given the timing of the launch in the waning days of a global pandemic that caused widespread shutdowns of all kinds of sporting events, there could be an opportunity as the world opens up.

“The professional sports industry had a difficult year in 2020, but we are confident that a successful vaccine rollout will bring fans back to stadiums worldwide,” said Roundhill co-founder Will Hershey.

MVP’s Portfolio

The fund is actively managed and evaluates companies based on quantitative and qualitative criteria. Despite its broad latitude in terms of the types of companies it can hold, the prospectus indicates that the portfolio’s emphasis will be on professional sports teams.

The types of sports that can find representation in the index range widely, with the document listing soccer, baseball, American football, basketball, hockey, tennis, wrestling, esports, automobile racing, mixed martial arts and strategy board games.

According to a fact sheet, the fund holds 36 companies drawn from a dozen countries. Professional sports teams represent nearly 45% of the portfolio, with apparel getting a 17% weighting. Top holdings include Madison Square Garden Sports (9.39%), Liberty Media (9.2%) and Manchester United (7.58%).

MVP is the only fund to focus specifically on sports teams and other companies that are associated with or support sports.

Contact Heather Bell at [email protected]