Few sectors are as well-suited to a pandemic as the video game industry.
As consumers have spent more time inside getting quality time with their screens, almost all corners of the video game industry have benefited, from traditional game publishers to online-only, free-to-play game developers to streaming services and beyond.
Not surprisingly, video gaming ETFs have performed remarkably well year to date, with all four ETFs outperforming the broader market by significant margins:
Source: StockCharts.com; data as of June 2, 2020
However, you might have noticed a staggering difference between the returns of the best-performing gaming ETF and the worst-performing. The Global X Video Games & Esports ETF (HERO) has risen 25% year to date, while the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) has returned only 12%.
Of course, that's still much better than the SPDR S&P 500 ETF Trust (SPY), which has lost 5% year to date:
Performance, Video Game ETFs vs. SPY
| Ticker | Fund | 1-Month Return | 3-Month Return | YTD Return |
| ESPO | VanEck Vectors Video Gaming and eSports ETF | 13.75% | 23.90% | 24.36% |
| HERO | Global X Video Games & Esports ETF | 14.71% | 21.76% | 24.57% |
| GAMR | Wedbush ETFMG Video Game Tech ETF | 11.59% | 19.17% | 17.25% |
| NERD | Roundhill BITKRAFT Esports & Digital Entertainment ETF | 11.10% | 20.70% | 12.33% |
| SPY | SPDR S&P 500 ETF Trust | 4.76% | 3.35% | -4.87% |
Source: ETF.com; data as of June 2, 2020
Still, it's a huge difference—one that, once again, all comes back to exposures. Video game ETFs offer a fascinating case study of what we're always saying here at ETF.com: You've got to know what you own.
Oldest Video Game ETF Sees Outflows In 2020
Year-to-date flows into video game ETFs have been strong, with a combined $213 million in new net investment dollars entering the space since Jan. 1, or more than half of their current total assets of $416 million.
Interestingly, though, that money hasn't been going into the oldest ETF, the Wedbush ETFMG Video Game Tech ETF (GAMR).
That's unusual for thematic ETFs, where investment assets are often dominated by the fund came to market first. For thematic plays, first-movers usually possess a significant marketing edge that's tough to overcome.
Yet GAMR has actually lost money year to date, with the fund seeing $4.6 million in net outflows since Jan. 1:
Flows, Video Game ETFs
| Ticker | Fund | Expense Ratio | AUM (M) | YTD Flows (M) |
| ESPO | VanEck Vectors Video Gaming and eSports ETF | 0.55% | $217.64 | $133.81 |
| HERO | Global X Video Games & Esports ETF | 0.50% | $94.97 | $79.30 |
| GAMR | Wedbush ETFMG Video Game Tech ETF | 0.75% | $86.68 | ($4.60) |
| NERD | Roundhill BITKRAFT Esports & Digital Entertainment ETF | 0.25% | $16.28 | $4.30 |
| Total: | $212.81 |
Source: ETF.com; data as of June 2, 2020
