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Exchange-traded funds, or ETFs, offer investors the opportunity to dabble in sectors that have an interest in with a modest investment. ETFs are pooled investments, like mutual funds, that offer investors diversification because stocks are bundled together.
For instance, anyone who enjoys video games and wants to try their hand at investing in stocks and securities in the gaming sector, they should consider the Wedbush ETFMG Video Game Tech ETF.
This ETF’s top 10 holdings include Roblox, GameStop, Nintendo, Activision Blizzard, Stillfront, Take-Two Interactive, International Games System, Krafton, SciPlay and Bilibili.
|GAMR||ETF MANAGERS TRUST WEDBUSH ETFMG VIDEO GAME TE||62.48||+0.23||+0.37%|
Why and how does an ETF allow a person to invest in a market sector that they are interested in?
Thematic ETFs like GAMR allow an individual or portfolio manager to focus on the growth of a specific market segment utilizing the knowledge and expertise of analysts that focus on the specific theme of interest, said Bryan Masucci, a director at ETF Managers Group based in San Diego.
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For example, according to Masucci, GAMR is designed to capture the various elements and types of companies that collectively represent the video game technology market segment.
"From chip creators to software [game] developers, from large cap to small cap, the companies must meet a set of criteria for inclusion in the index and then weighted in a way to create the most pure-play index staying true to the overall theme," he said.