For investors seeking momentum, VanEck Video Gaming and eSports ETF (ESPO – Free Report) is probably on the radar. The fund just hit a 52-week high and is up 62.5% from its 52-week low price of $57.84/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 of where it might be headed:
ESPO in Focus
The underlying MVIS Global Video Gaming and eSports Index intends to track the overall performance of companies involved in video game development, eSports, and related hardware and software. The product charges 56 bps in annual fees (See: all Consumer Discretionary ETFs here).
Why the Move?
The fund invests about 7% in Applovin Corp (APP – Free Report) . The Shares of that company surged 24% on Feb. 13, 2025 due to upbeat earnings. AppLovin’s quarterly earnings of $1.73 per share beat the Zacks Consensus Estimate of $1.34 per share. Its revenues of $1.37 billion surpassed the Zacks Consensus Estimate by 8.62%. the fund’s other holdings like Roblox and GameStop too recorded share price gains on Feb. 13. All these developments pushed up the ETF ESPO to a new 52-week high.
More Gains Ahead?
The ESPO ETF might continue its strong performance in the near term, with a positive weighted alpha of 59.63 (as per Barchart.com), which gives cues of a further rally.
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