1. What are ESPO and HERO?
The global gaming industry is expanding beyond consoles and PCs into mobile
gaming, e-sports, VR, and streaming platforms. Revenue models are also
shifting from packaged sales to subscriptions, in-game purchases, and
advertising. As the market grows, many investors are turning to ETFs for
indirect exposure to gaming companies.
Among U.S. gaming ETFs, VanEck’s ESPO and Global X’s HERO are two of the most
popular choices. Both ETFs invest broadly across the gaming industry, but they
differ in portfolio structure, country weighting, top holdings, and theme
concentration.
Because of these differences, investors often ask:
“Which one should I buy?”
Today, let’s break them down in an easy way and help you understand which ETF
fits different types of investors.
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2. ESPO – Focused on major global gaming leaders
ESPO is a global gaming & e-sports ETF managed by VanEck. It invests in
game developers, console makers, e-sports equipment and software companies,
and gaming platforms. Since it includes companies from the U.S., Japan, China,
Korea, and other Asian markets, the portfolio is well diversified globally.
ESPO’s strengths include:
- Higher weight in large-cap gaming companies
- Lower volatility compared to more aggressive gaming funds
-
Exposure to multiple segments: e-sports, console, mobile, cloud gaming
Because the fund is built on large global leaders, it behaves more like a
long-term industry tracker rather than a short-term momentum play. When
investing, it’s good to consider trends such as console cycles, mobile
game revenue, global player spending, and regulatory policies in major
markets.
3. HERO – Higher concentration in pure gaming companies
HERO, managed by Global X, is a more concentrated “pure gaming” ETF. Its
portfolio includes game software publishers, online gaming platforms,
streaming and broadcasting businesses, and e-sports-focused tech firms. HERO
tends to respond more aggressively to new releases, user growth trends,
streaming expansion, and sector sentiment.
Because of this:
- Price swings can be larger, both up and down
- It can deliver strong gains when gaming momentum accelerates
- It may react quickly to news, regulations, or weak game performance
This makes HERO attractive to investors who prefer growth-driven,
higher-beta exposure. As e-sports and online gaming continue to expand
globally, HERO’s thematic strength may become even more visible.
4. Which ETF is better?
There is no universal “winner,” because the two ETFs serve different purposes.
Some investors even hold both, using:
- ESPO for stability and diversified exposure
- HERO for higher growth potential
No matter which ETF you choose, it’s important to consider industry
cycles, currency effects, interest rates, and overall market sentiment.
Gaming is a fast-growing sector, but also sensitive to regulations and
news events.
* The information in this article is provided for informational purposes
only. All investment decisions and results are solely the responsibility of
the investor.
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