Aussies gaming hard and investing smart with GAME ETF

Australians are spending big on gaming while the GAME ETF soars 80% in a year amid the global boom.

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Key points
  • GAME ETF's Remarkable Performance: The Video Games and Esports ETF has soared 82.1% in the past year, benefiting from the increasing global and domestic online gaming trend.
  • Rising Online Gaming Expenditure: New research from CommBank reveals Australians increased their spending on online gaming by 38% over the past year, making it a significant component of the communication and digital category, which saw a 12% overall rise.
  • Gaming Popularity Among Renters: Online gaming expenses are notably higher among renters, with these expenses representing a larger share of their budget compared to essentials like health and education, indicating shifting spending priorities despite the cost-of-living pressures.

Video Games and Esports ETF (ASX: GAME) is trading at $20.53 apiece, up 0.76% today and soaring 82.1% over the past year.

GAME ETF is leveraging the worldwide online gaming craze to deliver sensational returns for Australian investors.

But Aussies aren't just investing in gaming, they're playing hard, too.

A man and woman playing video games.

Image source: Getty Images

Aussies join the worldwide gaming boom

New household spending research released by CommBank today shows online gaming recorded one of the largest increases in spending over the past year.

According to the data, Australians increased their spending on online gaming by 38% over the past 12 months.

Online gaming is part of the communications and digital category in CommBank's Household Spending Insights report.

This category saw the second strongest lift in spending over the past year, up 12% overall, beaten only by utilities, up 16.6%.

If you break the category down into segments, spending on online gaming is up 38% and video streaming services is up by 32%.

Aussies also increased their spending at computer stores by 21%, mobile apps 14%, and bundled communications 6%.

This was balanced against reduced spending on calling card services, data and cloud storage, music streaming services, mobile phone accessories and repairs, and pay TV services.

CommBank said:

The Communications & digital category continues to record solid gains.

[In September} the category was influenced by the release of the new iPhone and continued strong spending growth on online gaming and streaming, supported by steaming hits like 'The Summer I Turned Pretty'.

What makes this data particularly interesting is that the cost-of-living crisis is still being felt, yet the discretionary expenses of online gaming and video streaming have experienced some of the strongest rises in spending.

Commbank said the use of artificial intelligence (AI) in households is supporting this choice; however, the data also notes that online gaming spending is highest among renters, who usually have lower monthly housing costs than owners with mortgages.

Communications and digital expenses are commanding about 8% of renters' wallets — more than health (5%) and education (3%).

What is GAME ETF?

Online gaming has become a favourite recreational activity globally. Statista data shows there are 2.7 billion gamers worldwide today. 

This is why the GAME exchange-traded fund (ETF) exists.

The Betashares GAME ETF is currently invested in 37 stocks. The top holdings are NetEaseRoblox Corp, and Tencent.

GAME ETF seeks to track the performance of the Nasdaq CTA Global Video Games & Esports Index.

Most of its investments are in interactive home entertainment devices and facilities, with 77% of funds allocated.

Other major allocations include interactive media and services at 9%, and leisure products at 7%.

The US is the biggest geographic exposure at 40%, followed by Japan at 31%, China at 19%, and South Korea at 6%.

The GAME ETF pays dividends (or 'distributions') once per annum.

The management fee is 0.57% per year.

Since GAME's inception in February 2022, this ASX ETF has produced an average total annual return of 17%.

In FY25, GAME ETF delivered total returns of just over 90%, making it one of the top six international ETFs on the market.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) also delivered strong total returns of 66.4% in FY25.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Roblox and Tencent. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended NetEase. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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