UOB Asset Management (UOBAM) is launching United Hero exchange-traded fund (UHERO), allowing investors to track and profit from the gaming industry's exponential growth.
The gaming industry touts more than 3.2 billion participants worldwide, of which 1.5 billion are in Asia, 716 million in Europe, 420 million in Latin America, and 285 million in North America.
Total revenue from the gaming industry was forecast to reach US$178 billion in 2021, exceeding the total revenue of the film and music industries.
The gaming industry is growing about 10% per year, with projected revenue expected to reach $200 billion by 2022.
UHERO fund invests in one master fund: Global X Video Games & Esports ETF (HERO).
The master fund is an ETF listed on the Nasdaq, with Global X Management Company LLC serving as a fund manager.
The HERO fund seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video game or e-sports content, own and operate within competitive e-sports leagues, and produce hardware used in video games and e-sports, including gears for augmented and virtual reality.
According to UOBAM, the ETF is suitable for investors who wish to diversify their investments abroad and can accept investment risks in the medium and long term.
Although the fund's performance has dropped by 8.45% over the past year, it still shows promising returns, having logged 34.7% profit since its inception, said the asset management company.
HERO invests in 42 game-focused companies, including Nvidia Corp, Netease Inc ADR, Electronic Arts, Nintendo and Sea Ltd ADR.
UOBAM said 77% of the fund is invested in telecom businesses and 15.5% in information and technology.
The fund investment is distributed in three main countries: the US (30.8%), Japan (24.9%) and South Korea (16.1%).
Vana Bulbon, chief executive of UOBAM, said the UHERO fund will launch an initial public offering on Jan 17-21 with a minimum investment of 1,000 baht.
Pakorn Peetathawatchai, president of the Stock Exchange of Thailand, said the SET supports any asset management firms interested in launching new types of ETFs and other foreign products such as fractional depositary receipts to provide Thai investors more opportunities to diversify their investments in foreign stocks or businesses.
UHERO is scheduled to trade on the SET next month.