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Highlights
Demand for ETFs has remained high in past few months.
However, of late, a few ETFs have seen significant selloffs.
But this can be an opportunity for investors to invest in these funds at lower prices.
Exchange traded funds (ETFs) track an index, sector or some other asset and can be easily sold on a stock exchange just like a common stock. Demand for ETFs has increased significantly in past few months. ETFs are generally picked by investors with inadequate funds to build a diverse investment portfolio. Investors can get exposure to several high-potential shares via a single investment. These funds can be easily sold on a stock exchange just as a regular stock.
A few ETFs have seen significant selloffs lately due to ongoing stock market uncertainty. However, a fall in ETF prices has also emerged as an opportunity for investors who could now invest in these funds at a lower price.
On this note, let’s discuss these two ETFs which have suffered a nearly 20% fall in 2022:
VanEck Vectors Video Gaming and Esports ETF (ASX:ESPO)
VanEck Vectors Video Gaming and Esports ETF deals with video gaming and e-sports. The fund gives exposure to some of the largest companies involved in video game development, hardware, and esports.
The 10 largest positions in the ESPO ETF’s portfolio include Tencent, Nvidia, Activision Blizzard, Netease, Nintendo, Advanced Micro Devices, Electronic Arts, Nexon, Bandai Namco and Zynga.
VanEck notes that these companies are well placed to benefit from the increasing popularity of video games and eSports. E-sports revenue grew even by an average of 28% per annum since 2015.
The ETF’s annual management fees stand at 0.55%. Its price has fallen by 28% since the start of 2022.
BetaShares Global Cybersecurity ETF (ASX:HACK)
BetaShares Global Cybersecurity ETF is into the global cybersecurity sector.
The 40 largest positions in HACK ETF’s portfolio include Cisco Systems, Palo Alto Networks, Crowdstrike, Zscaler, Mandiant, Booz Allen Hamilton, Leidos, Cloudflare, Sailpoint Technologies, and Akamai Technologies.
Demand for cybersecurity services is likely to rise on a strong note in the future amid rising cases of cyber frauds, providing growth opportunities to the companies which are part of the fund.
The global cybersecurity market is likely to rise to US$248.26 billion in 2023 from US$151.67 billion in 2018, according to Statista.
The ETF’s annual management fees stand at 0.67%. Its price fell 20% since the start of 2022.
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