Introduction
If you’re drawn to the excitement of gambling, sports betting, online gaming, or even broader “sin” industries, there are several Exchange-Traded Funds (ETFs) that can put your money to work in these unique sectors. Below, you’ll find an in-depth look at four thematic funds that each take a different spin on the gaming and entertainment space. You’ll discover how they differ in portfolio focus, investment strategy, expense ratios, and more, helping you decide which might fit best in your broader portfolio plans.
1. VanEck Gaming ETF (BJK)
Focus and Holdings
BJK is often seen as the original ETF dedicated to the gaming world. It invests in companies that earn at least half of their revenue from casinos, casino hotels, sports betting, and supporting gaming technologies. You’ll see well-known Las Vegas casinos in its holdings, along with international operators in places like Macau. This means you’re getting a global perspective on the casino industry.
Investment Strategy
BJK aims to mirror the performance of the MVIS Global Gaming Index. It does this by including prominent companies in the casino, sports betting, and online gambling space. Because it’s spread across multiple regions, BJK can lower risk in one area if another region happens to be booming. However, keep in mind that different markets have different regulations and cultural attitudes toward gambling, which can affect how quickly this sector grows.
Expense Ratio and Structure
Since BJK focuses on a specific theme, you’ll likely notice that its expense ratio is higher than broad-market funds. Still, BJK’s longer track record and emphasis on well-established casinos make it a popular choice among those wanting direct exposure to the global gaming industry.
2. Roundhill Sports Betting & iGaming ETF (BETZ)
Focus and Holdings
BETZ is heavily centered on sports betting and online gambling, often known as iGaming. As sports betting legalization has expanded in the U.S. and continues to gain attention worldwide, this ETF has garnered interest from those who believe digital wagering will keep growing. You’ll find daily fantasy sports platforms, online casinos, and software providers all mixed together in BETZ’s portfolio.
Investment Strategy
By following the Roundhill Sports Betting & iGaming Index, BETZ is laser-focused on companies poised to benefit from digital gambling trends. It goes beyond just U.S. companies, though. If a sports betting operator or gaming technology firm is making waves internationally, it’s likely to appear in BETZ’s holdings.
Expense Ratio and Structure
Given its niche focus, BETZ comes with the kind of expense ratio typical of thematic funds. If you’re looking for a straightforward way to tap into the rise of online sports betting, BETZ might be worth considering, especially if you’re okay with a sharper focus on a relatively new but fast-growing corner of the gaming market.
3. ProShares On-Demand ETF (ODDS)
Focus and Holdings
ODDS is a relative newcomer and aims to capture the broader “on-demand” trend in consumer behavior. Part of that includes sports betting, eSports, and similar online entertainment platforms. Unlike BJK or BETZ, which mostly stick to casinos and betting, ODDS ventures into other digital entertainment services. This means you might find companies that provide streaming or eSports competitions right alongside sports betting names.
Investment Strategy
With its emphasis on on-demand consumption, ODDS tries to capitalize on how quickly people gravitate toward digital platforms for their entertainment needs. Sports betting is indeed a big part of that shift, but you may also gain exposure to other areas not strictly tied to gambling. This diversification can be good if you’d like a mix of entertainment-driven themes beyond pure gaming.
Expense Ratio and Structure
As a newer, thematically driven fund, ODDS typically carries expenses that are comparable to other specialized ETFs. Because it invests in emerging and evolving consumer trends, its holdings might change more often. That means if you hop into ODDS, you’ll want to keep an eye on how the fund adjusts to changing market conditions and consumer preferences.
4. AdvisorShares Vice ETF (VICE)
Focus and Holdings
VICE goes beyond gaming to include industries many consider vices, such as alcohol, tobacco, cannabis, and gambling. So, while gaming is in the mix, it’s definitely not the only focus. This multi-industry approach can feel less risky than a single-theme ETF, since not all vice categories move in the same direction at once.
Investment Strategy
VICE is actively managed, which sets it apart from the more index-focused approaches of BJK, BETZ, and ODDS. The fund managers can change holdings based on their research or outlook, aiming to find the most promising vice-related companies at any given time. Active management can offer perks when certain industries heat up, but it may also come with higher fees or other risks tied to manager decisions.
Expense Ratio and Structure
Because VICE is actively managed and covers multiple “sin” sectors, you’ll typically see a higher expense ratio than you would in a passively managed fund. That said, some see the flexibility in picking and choosing companies across vice-related industries as a worthwhile trade-off, especially if you like the idea of broader coverage than a single-issue fund.
Comparing and Contrasting the Four ETFs
| Criteria | VanEck Gaming ETF (BJK) | Roundhill Sports Betting & iGaming ETF (BETZ) | ProShares On-Demand ETF (ODDS) | AdvisorShares Vice ETF (VICE) |
|---|
| Scope of Holdings | – Focused on casino & gaming companies (physical and online) – Includes global casino operators and related tech providers | – Specializes in sports betting and online gambling (iGaming) – Targets daily fantasy sports, sportsbook brands, and specialized data firms | – Broader on-demand entertainment approach – Includes sports betting, eSports, and some streaming/tech names | – Covers multiple “vice” industries: gambling, alcohol, tobacco, cannabis – Gaming is part of a wider sin-focused mix |
| Geographic Reach | – Significant exposure to the U.S. and Macau – Global diversification across major casino hubs | – Mix of global holdings, but heavier in North America & Europe – Follows legalization trends in sports betting around the world | – Somewhat global, but with an emphasis on U.S. tech and on-demand entertainment | – Domestic and international vice-related companies – Often a strong U.S. tilt, especially with certain vice sectors |
| Volatility | – Subject to changes in regional gaming regulations – Influenced by consumer spending in casinos | – Can be sensitive to legal shifts in sports betting – High-growth potential with more concentrated risk in online wagering | – Volatility tied to both sports betting and broader digital/tech trends – Potentially more diversified than pure-play | – Diversified across multiple sin categories – Active management may help pivot among industries but adds complexity |
| Fees and Management | – Passively managed, tracks MVIS Global Gaming Index – Expense ratio generally higher than broad-market ETFs due to niche focus | – Passively managed, mirrors the Roundhill Sports Betting & iGaming Index – Thematic expense ratio, typical of niche ETF offerings | – Generally index-based or semi-passive thematic strategy – Expense ratio reflects its specialized approach | – Actively managed, higher expense ratio – Managers can shift weight among vices based on research and market outlook |
Conclusion
All four of these ETFs—BJK, BETZ, ODDS, and VICE—offer different ways to access the gaming and “sin” arenas. BJK takes a global casino-centric path, BETZ zeroes in on online sports betting, ODDS blends sports betting with other on-demand platforms, and VICE actively manages a collection of vice industries under one roof. When deciding if any of these funds align with your personal goals, think about what type of exposure you’d like, your comfort level with legal and market risks, and whether you’re more drawn to concentrated or diversified strategies. Each ETF has its own story to tell, and by understanding the distinctions, you can better pinpoint which one might suit your approach to this lively—and sometimes unpredictable—market segment.
