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Sports Betting ETF (NERD) Hits New 52-Week High

For investors seeking momentum, Roundhill BITKRAFT Esports & Digital Entertainment ETF NERD is probably on radar. The fund just hit a 52-week high and is up 131% from its 52-week low price of $11.91/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

NERD in Focus

This fund targets the growing market of electronic sports, or “esports,” including video game publishers, streaming network operators, video game tournament and league operators/owners, competitive team owners, and hardware companies. American and Chinese firms account for 25.5% and 24.8% share, respectively, while Taiwan and Sweden round out the next three spots. The ETF charges investors 50 bps in annual fees (see: all the Consumer Discretionary ETFs here).

Why the Move?

The esports corner of the broad stock market has been an area to watch lately given the rapid expansion of legal sports betting across the globe. Sports betting is now legal in 26 states (plus Washington, D.C.) while 25 states allow casino gambling. An upsurge in smartphone adoption and improving Internet infrastructure across the world should fuel strong growth in the gambling market. Various new technologies like Virtual Reality, 3D Animation, Live Table Games, Blockchain, IoT and VR Headsets are driving the outlook for the gaming market over the coming years.

More Gains Ahead?

It seems that NERD might remain strong given a high weighted alpha of 88.18 and a low 20-day volatility of 32.95%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.

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Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD): ETF Research Reports
 
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