Average Daily Volume
28.5K
Fund Overview
The Global X Video Games & Esports ETF (HERO) seeks to invest in companies that are positioned to benefit from the increasing popularity of video games and esports. This includes game developers, esports platforms, hardware manufacturers, and streaming services. The fund provides exposure to a rapidly growing industry driven by technological advancements, increasing global internet penetration, and the rise of competitive gaming. HERO offers investors a way to capitalize on the expanding digital entertainment sector, which has shown resilience and growth even during economic downturns. The ETF is designed for those who believe in the long-term potential of interactive entertainment and its integration into mainstream culture.
- Asset Class
-
Equity
- Industry
-
Gaming
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.73 %
- Currency Hedged
-
No
- Portfolio Turnover
-
31 %
- Dividend Date
-
Why Invest in the HERO ETF?
Potential Benefits
- Exposure to the high-growth video games and esports industry, which has consistently outperformed traditional entertainment sectors.
- Diversification across game developers, hardware providers, and streaming platforms, reducing single-stock risk.
- Potential for strong returns driven by increasing global demand for interactive entertainment and digital engagement.
- Liquidity and transparency as an ETF, allowing easy access to a niche but expanding market segment.
- Alignment with long-term trends such as the metaverse, mobile gaming growth, and esports professionalization.
Potential Risks
- High volatility due to the speculative nature of growth-oriented tech and entertainment stocks.
- Regulatory risks, particularly in regions with strict gaming content or monetization laws.
- Dependence on consumer discretionary spending, which may decline during economic downturns.
- Competition within the industry could pressure profit margins for some holdings.
- Currency and geopolitical risks, as many gaming companies operate globally.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.7%
|
-7.0%
|
-6.3%
|
+3.3%
|
-3.6%
|
-2.9%
|
+5.5%
|
+3.8%
|
-1.0%
|
+0.9%
|
-
|
-
|
| 2025 |
+3.6%
|
+7.6%
|
-4.7%
|
+12.6%
|
+4.3%
|
+12.1%
|
-4.7%
|
+5.1%
|
+3.4%
|
-3.6%
|
-4.2%
|
-3.8%
|
| 2024 |
-2.9%
|
+2.9%
|
+2.7%
|
-6.0%
|
+7.3%
|
+2.7%
|
+4.2%
|
+0.5%
|
+8.6%
|
-3.4%
|
+3.9%
|
-3.0%
|
| 2023 |
+8.6%
|
-7.4%
|
+7.8%
|
-1.0%
|
-2.7%
|
+4.7%
|
+4.6%
|
-7.6%
|
-5.9%
|
-2.8%
|
+9.3%
|
+2.5%
|
| 2022 |
-6.2%
|
-2.5%
|
-2.9%
|
-11.9%
|
+4.6%
|
-9.4%
|
+4.6%
|
-5.2%
|
-14.2%
|
-1.7%
|
+9.9%
|
-2.5%
|
| 2021 |
+4.1%
|
+1.0%
|
-3.8%
|
+3.2%
|
0.0%
|
-0.2%
|
-5.7%
|
-0.4%
|
-7.7%
|
+5.3%
|
0.0%
|
-3.6%
|
| 2020 |
+1.5%
|
+0.8%
|
-2.3%
|
+8.6%
|
+14.7%
|
+13.2%
|
+5.8%
|
+11.2%
|
0.0%
|
-2.4%
|
+8.1%
|
+9.1%
|
| 2019 |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
+5.1%
|
+3.8%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
TTWO
|
TAKE-TWO INTERACTIVE SOFTWARE INC |
6.7 % |
|
EA
|
ELECTRONIC ARTS INC |
5.8 % |
|
NTES
|
NETEASE INC ADR |
5.7 % |
|
RBLX
|
ROBLOX CORP ORDINARY SHARES CLASS A |
5.3 % |
|
U
|
UNITY SOFTWARE INC ORDINARY SHARES |
4.2 % |
|
BILI
|
BILIBILI INC ADR |
4.1 % |
Top 10 holdings shown, out of 46 total holdings.
Related ETFs: HERO vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
HERO tracks the Solactive Video Games & Esports Index, which selects companies that generate significant revenue from video game development, esports activities, or related hardware and software. The index is weighted by market capitalization, with adjustments for liquidity and foreign ownership restrictions. The ETF primarily holds common stocks of global gaming companies, with a focus on mid- and large-cap firms. HERO is passively managed and rebalanced quarterly to maintain alignment with its underlying index. The fund's holdings span across game publishers, console manufacturers, chipmakers, and streaming platforms, providing diversified exposure to the gaming ecosystem.
Frequently Asked Questions
What types of companies does HERO invest in?
HERO invests in companies involved in video game development, esports platforms, gaming hardware production, and related streaming services, including both established publishers and emerging players in the industry.
How does HERO differ from general technology ETFs?
HERO provides concentrated exposure specifically to the gaming and esports sector, while general tech ETFs cover a broader range of industries like software, semiconductors, and internet services with limited gaming representation.
Is HERO suitable for dividend investors?
HERO is primarily focused on growth rather than income, as most gaming companies reinvest profits rather than pay substantial dividends. Investors seeking yield might consider more mature tech or diversified ETFs.
What percentage of HERO is invested in international stocks?
As of the latest holdings, approximately 40-50% of HERO's portfolio is invested in non-U.S. companies, reflecting the global nature of the gaming industry with significant representation from Asian and European markets.
How has HERO performed during market downturns?
While past performance doesn't guarantee future results, HERO has shown resilience during some market declines as gaming demand often remains stable, though it can be volatile during periods of risk aversion in growth stocks.
Industry Overview
The Global X Video Games & Esports ETF (HERO) provides targeted exposure to the video gaming and esports industry, a sector experiencing explosive growth due to technological innovation and shifting consumer preferences. The global gaming market is projected to surpass $300 billion by 2026, driven by mobile gaming, cloud gaming, and the professionalization of esports. HERO invests in companies across the gaming ecosystem, from AAA game publishers to esports tournament organizers, offering investors a way to participate in this dynamic sector. The rise of virtual economies, in-game purchases, and streaming platforms further enhances the investment case for HERO, as these trends create recurring revenue streams beyond traditional game sales.
Alternative Comparison
Compared to similar ETFs like ESPO and NERD, HERO offers a broader exposure to the gaming industry beyond just esports. While ESPO focuses heavily on pure-play esports companies, HERO includes traditional game developers and hardware providers that benefit from overall industry growth. NERD, another competitor, has more concentration in smaller gaming companies, whereas HERO maintains a balance between established publishers and growth-oriented firms. HERO's expense ratio of 0.50% is competitive within this niche category, though some broader tech ETFs may have lower fees with partial gaming exposure.
Issuer Overview
Global X ETFs, the issuer of HERO, is known for its thematic and sector-specific ETFs that target emerging trends and disruptive technologies. With a focus on innovation, Global X has built a reputation for providing niche exposure through cost-effective and liquid investment vehicles. The firm's expertise in thematic investing is reflected in HERO's construction, which aims to capture the growth potential of the gaming industry.
Conclusion
The Global X Video Games & Esports ETF (HERO) presents a compelling option for investors seeking targeted exposure to the gaming industry's growth. With its diversified approach across game developers, hardware manufacturers, and esports platforms, HERO captures multiple facets of this expanding sector. While the fund carries typical growth-stock risks, its focus on a high-potential industry with strong secular tailwinds makes it worth consideration for long-term portfolios. Investors should weigh HERO's specialized exposure against their risk tolerance and overall investment strategy.
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