High Profit Low Risk ETF, ESPO. - YouTube

hello everyone tony here today we're going to talk about an etf

normally etf is not on my list but people

complain it's too expensive to get tech stocks right now

and they're also free the market may crash so

i pick up this etf that behaves much better than the overall nasdaq

especially in a weak market if you don't want to leave the market

right now but are afraid it's going to crash then

getting this etf will lower your risk significantly

while still give you good returns before we start please click that

ravishing like button that's the only thing i ask for making

this video this etf we're talking about today is

Vaneck vectors /video gaming and esports ticker symbol espo this etf

behaves well after the march crash kept going up

until the september crash

espo gives a chance for small investors to get their hands on some hot but

expensive stocks for example nvidia the price is over

five hundred dollars per share now if you don't have a lot of money and

didn't use it well you might use up all your bullets before

you really need them now almost no room for any mistake

let's take a look at the risk first

number one is overall performance if this etf can't outperform the nasdaq

then why should we buy the etf we can just

buy the nasdaq qqq that's a lot safer right second

people are thinking one code gets controlled

everybody is going to be back on street nobody stays home and play games anymore

and third government regulations can sometimes

really affect a gaming company or the entire gaming industry and fourth

this is not a huge etf the assets were only like 470 million

not too big the volume not too big either

so those are the four risks

at the beginning of the video i said this etf has significantly lower risk

than the tech doc itself let's take a look at its performance

versus qqq in the september crash qqq is an etf tracking nasdaq 100 index

i talked about it a lot more in a video earlier talking about supporting levels

if you're interested you can go take a look here we can see

the performance of espo beats qqq in the recent crash well some people

might say hey it's just a one-time thing it could just be a coincidence

well if we take a look at the historical meltdown happening in march

we can see that there's still a 10 percent difference

in the performance that's a huge difference

on the returning side the return rate this year

espo is almost twice as much as nasdaq

some people may think COVID trapped people home

that's why gaming industry thrived true it is one factor

but even if you start looking at it from October 2018

the two-year return rate of espo still beats that of nasdaq by almost 45

percent the gaming industry has been

outperforming nasdaq and is going to keep on doing so this is

a consistently high growth industry it won't slow down after the

pandemic it became a sport and more and more

professional thus espo is very charming even after

the COVID

the next risk is government regulation that's actually

quite important there is a chance that the companies get into trouble

developing a game violating some people's value

got criticized or even in law trouble there's also a chance the game platform

might be affected by apple store policy it's exactly the

reason why we didn't choose to buy gaming company stock

this etf contains the whole industry hardware manufacturer gaming companies

themselves gaming live show companies etc

that's going to be easy money

we can see the game market forecast from 2018 to 2022

annual growth is nine percent not as great as some of the new

areas like tesla but for pretty mature industry

this is very good in 2020 competitive video gaming are expected to

have 495 million audience

esports revenue has been growing almost 28 percent

yearly since 2015. here is a graph illustrating 2020 game

market the total revenue reached astonishing

159 billion dollars 9.3 percent more than last year

mobile gaming and smartphone gaming contribute the most

13.3 percent and 15.8 respectively i don't have to emphasize

how much money smartphone gaming can make

very little investment with huge returns the only game going downhill is browser

gaming its percentage went down 13.4

percent because it's here an awkward position

not as convenient as mobile device or smartphone

yet incomparable experiencing with the AAA games on pc or on console

espo only includes companies that derive at least 50 percent of their total

revenue from video gaming therefore all those growth we saw on

this graph will affect espo so long as the gaming

market increases this etf will keep on

increasing now let's take a look at espo's

components this is the top 10 stock it's holding as

of september 14th together there are over 60 percent of

the entire portfolio you can see their own nvidia the most

about 9 percent then tencent and amd each

7.7 nvidia produces video card and amd produces cpu both critical

hardware for gaming containing those two stocks is one big

reason i chose this etf over some other gaming etfs keep

going down the list you'll find major companies in a lot of different

countries like nintendo c blizzard, bilibili etc

in their portfolio there are about 35 percent of us companies, twenty percent Japanese

companies and 18 percent of Chinese

companies a few other European countries are

each below ten percent

the net expense ratio for them is 0.55

percent per year relatively low even for an etf

one last thing espo is relatively small etf

with only uh about 470 million asset and daily average volume is only about

180, 000 not very big

to summarize with the uncertainty we're facing

espo is definitely a good choice especially if you're a rookie investor

but still want to stay in the game i gave a b

on its growth simply because it's an etf it's hard to beat a stock if it bursts

out however this also helps minimize the

risk when that stock crashed as euro i give my get him price

for reference if you are free to miss the opportunity

get in any time 55 to 60 would be a reasonable price to get him

below 55 is dirt cheap and if it's below 50

man it's a steal

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time