Gaming & Casino ETF – Contrarian Play

It has been a few turbulent years for the gaming and casino sector. US consumers reduced spending in vacations to Las Vegas and entertainment means gaming companies had to go overseas to look for growth.

After spending billions in expanding gaming presence in Macau. The casino stocks’ growth is once again under pressure following the Chinese government crackdown on corruption. Macau gaming revenue has fallen 40% since the start of the crackdown.

Casino ETF can be a safer avenue for investor to gain casino and gaming exposure in the investment portfolio by eliminating to some degree individual stock risk and gain the global secular trend of liberalising gambling. It provides direct sector exposure to the global gaming industry.

Current negative investor could mean that gaming ETF is a contrarian play. This is with benefit of the flow through from lower oil prices boosting consumer spending.

Market Vectors Gaming ETF (BJK) is the only listed gaming ETF designed for investors to take advantage of the global casino and gaming operators. BJK invests across more than 40 listed casino stocks in the Market Vectors Global Gaming Index. The index is capitalisation weighted so the larger the company, the greater weight in the index.

Around 30% of BJK is invested in US gaming stocks. Combined with Hong Kong listed gaming stocks both countries account for more than 50% of the ETF.

Casino ETF

List of stocks below shows the Top 10 stocks in BJK and total number casino stocks sorted by country.

Holding Ticker % of net assets
Las Vegas Sands Corp LVS 8.39%
Galaxy Entertainment Group Ltd 27 8.18%
Sands China Ltd 1928 7.02%
Wynn Resorts Ltd WYNN 6.38%
Mgm Resorts International MGM 4.78%
Genting Singapore Plc GENS 3.31%
International Game Technology IGT 3.23%
William Hill Plc WMH 3.16%
Crown Ltd CWN 3.12%
Tatts Group Ltd TTS 3.03%

 

Gaming ETF Performance

 

Gaming Stock List

Holding Ticker Country
Las Vegas Sands Corp LVS US
Wynn Resorts Ltd WYNN
Mgm Resorts International MGM
International Game Technology IGT
Melco Crown Entertainment Ltd MPEL
Gaming And Leisure Properties Inc GLPI
Pinnacle Entertainment Inc PNK
Churchill Downs Inc CHDN
Boyd Gaming Corp BYD
Penn National Gaming Inc PENN
Scientific Games Corp SGMS
Global Cash Access Holdings Inc GCA
Betsson Ab BETSB SS
Genting Singapore Plc GENS SP
Gold Reef Resorts Ltd TSH SJ
Sun International Ltd/South Africa SUI SJ
Sky City Entertainment Group Ltd SKC NZ
Genting Malaysia Bhd GENM MK
Multi-Purpose Holdings Bhd MAG
Berjaya Sports Toto Bhd BST
William Hill Plc WMH LN
Paddy Power Plc PAP
Playtech Ltd PTEC
Betfair Group Plc BET
Ladbrokes Plc LAD
Partygaming Plc BPTY
Kangwon Land Inc 35250 KS
Paradise Co Ltd 34230 KS
Sega Sammy Holdings Inc 6460 JP
Sankyo Co Ltd 6417 JP
Gtech Spa GTK IM
Galaxy Entertainment Group Ltd 27 HK
Sands China Ltd 1928
Wynn Macau Ltd 1128
Sjm Holdings Ltd 880
Mgm China Holdings Ltd 2282
Macau Legend Development Ltd 1680
Melco International Development Ltd 200
Opap Sa OPAP GA
Intralot Sa-Integrated Lottery Systems INLOT GA
Amaya Gaming Group Inc AYA CN
Crown Ltd CWN AU
Tatts Group Ltd TTS
Aristocrat Leisure Ltd ALL
Tabcorp Holdings Ltd TAH
Echo Entertainment Group Ltd EGP