ETF Launches: NERD

Newcomer rolls out a second-to-market esports ETFs.

Reviewed by: Heather Bell
Edited by: Heather Bell


Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)
New fund targets the esports space

In June, ETF newcomer Roundhill Investments launched the market’s second fund to target the esports space. The Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) covers video game developers, platforms, and event and league operators, among other corners of the online gaming space.

NERD comes with an expense ratio of 0.25%. It lists on the NYSE Arca.

According to the fund prospectus, the underlying index can include companies that: are video game developers or publishers; operate video game streaming platforms; organize video game tournaments and related events; operate or own video game teams; provide gaming hardware and technology; and those involved in other aspects of the digital entertainment industry. Companies are classified as pure play, core or noncore.

Eligible companies are scored on how involved they are in the digital entertainment space based on keyword searches of regulatory filings, analyst reports and other publicly available sources.

The highest-scoring companies are classified as pure plays, while the lowest scoring companies are excluded from the index. The number of pure-play companies generally determines the total number of components in the index, with 25 companies set as the minimum, the prospectus says.

Source: Data and information as of 6/30/2019.
ETF Filings sidebar covers launches and closures for the month of June 2019.


Heather Bell is a former managing editor of She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.