Solactive appointed as Index Provider for first Canadian eSports and eGaming ETF
Solactive is pleased to announce the release of its Solactive eGaming Index. It serves as the underlying of the Evolve E-Gaming Index ETF (“HERO”) and includes companies active in eGaming and eSports, both of which are striving markets with robust performance potentials. Canadian ETF provider Evolve ETFs will be the first company to launch an ETF tracking the index.
eSports is a cultural phenomenon, and the rise of global communication has transformed what was once an individual pastime to become a worldwide billion-dollar industry. In 2018, the combined revenue of companies involved in the global eGaming industry topped USD 100 bn, setting a solid foundation for potential future growth.
For investors to benefit from the momentum of the global eGaming market, Solactive developed its Solactive eGaming Index, which provides exposure to companies that are engaged in the eGaming segment. For example, the index includes global companies that run online gaming web sites and incorporates game producers for smartphones, PCs, handhelds, or dedicated consoles.
“When I got involved in computer games, it´s been thick pixels and a purely individual and local activity. Nowadays, gamers compete with others on a global scale, driving the value of companies that feed the players’ hunger for new impressions and me and my joystick skills got completely sidelined,” says Timo Pfeiffer, Head of Research at Solactive. “The development of the Solactive eGaming Index displays Solactive’s aspiration to be on the front line of trends. We strive to find for our clients an added value that they can pass on to their consumers. We are happy to collaborate with Evolve ETFs, as they recognized the potential of this increasingly growing market, making it possible for investors to participate in that evolution.”
“The launch of HERO marks an opportunity for Canadian investors to participate in another innovative sector positioned for exponential global growth,” said Raj Lala, President and CEO of Evolve. “The momentum behind eGaming signifies a cultural shift in entertainment with 2.2 billion gamers globally. Additionally, almost 500 million people are expected to watch e-gaming events, leading to supplemental revenue sources for the industry from areas such as media rights and sponsorships. This year, the industry is forecasted for growth upwards of 38%.”
The Solactive eGaming Index features an individual weighting cap at 10% of every security included. Index Components are initially weighted according to their Security-level Market Capitalization.
The Evolve E-Gaming Index ETF (HERO) will be listed on the Toronto Stock Exchange (TSX) and starts trading on June 17, 2019.