Revolutionizing Investment in the Video Game Industry: Amplify's Strategic Shift

The Amplify Video Game Tech ETF (GAMR) has undergone a significant transformation by transitioning to the VettaFi Video Game Leaders Index (VGAME). This change, effective January 28, aims to provide investors with exposure to leading companies across the global video gaming value chain. The ETF now focuses on a concentrated portfolio of 20 companies, representing various facets of the industry, from game development and publishing to hardware and metaverse technologies. With $40 million in assets under management, GAMR continues to position itself as a key player in this dynamic sector. Additionally, the index includes a diverse geographic representation, with U.S.-based companies making up nearly 58% of the index weight, followed by Japan, China, and Singapore. The top holdings include tech giants such as NVIDIA, Meta Platforms, Microsoft, and Tencent Holdings.

Enhancing Global Exposure Through Diverse Holdings

The new index for GAMR offers a well-rounded investment opportunity by including companies from multiple regions. The fund's diversified portfolio ensures that investors gain exposure to both established markets and emerging economies. The U.S. remains the dominant player, contributing almost 58% of the index weight, while Asian countries like Japan and China hold substantial positions at 17% and 15%, respectively. Smaller but significant contributions come from Singapore, Australia, and Taiwan, each adding unique elements to the overall composition. This geographical spread not only mitigates risks but also taps into regional strengths within the gaming industry.

The top 10 holdings of the VettaFi Video Game Leaders Index provide a snapshot of the industry's powerhouses. Leading the pack are NVIDIA, known for its graphics processing units (GPUs), and Meta Platforms, which is expanding into virtual reality and the metaverse. Other notable names include Microsoft, Advanced Micro Devices, Tencent Holdings, Applovin, NetEase, Nintendo, Sea, and Sony Group. These companies represent a broad spectrum of activities within the gaming ecosystem, from hardware manufacturing to software development and online platforms. By concentrating on these leaders, the index aims to capture the essence of innovation and growth in the video game sector.

Bolstering Thematic ETF Offerings Through Strategic Acquisitions

Amplify's acquisition of ETF Managers Group’s 14 funds in 2023 significantly expanded its thematic ETF lineup. This strategic move allowed Amplify to incorporate several ETFs focused on potentially disruptive industries, thereby enhancing its existing offerings. Among these acquisitions was GAMR, which now benefits from Amplify's expertise and resources. The addition of GAMR strengthens Amplify's position in the rapidly evolving video game market, providing investors with more options to explore this exciting sector.

The broader landscape of video game-focused ETFs includes other players such as the VanEck Gaming ETF (BJK), the Roundhill Video Games ETF (NERD), and the Global X Video Games & Esports ETF (HERO). Each of these funds offers distinct approaches to investing in the gaming industry, catering to different investor preferences. Amplify's decision to align GAMR with the VettaFi Video Game Leaders Index underscores its commitment to delivering high-quality, specialized investment products. As the gaming industry continues to grow, GAMR's updated strategy positions it as a compelling choice for those seeking to capitalize on this trend.