Learn more about our Sports Betting ETF
The index our Sports Betting ETF tracks is rules-based, providing
exposure to global companies that generate the majority of their revenues
and/or growth in revenues to Sports Betting and iGaming.
The companies include B2C
online-focused brands that have exposure to a wide range of online gaming
products; omnichannel companies that have bricks and mortar casinos with an
increasing emphasis to online; and service provides to B2C companies that
include technology platform, sports data providers, media and affiliate
The index is diversified across
company type, size and regional exposure. It includes larger and more
established companies alongside a number of small to medium size companies that
specialise in one aspect of the value chain that can grow inline, or at a
faster pace than the industry.
Around two thirds of the
companies in the Index are B2C companies with the remaining one third made up
of technology, data and other product suppliers and media /affiliate marketing
Around 60% of the companies are
listed in Europe with the remainder in the US, with one Australian companies.
The largest market cap companies are in the US.
success drivers for the B2C companies:
Wide geographic reach
Width & depth of product offering
Leading product and technology integration
Efficient player acquisitions and retention
Wide geographic reach and ability to scale across regions. There is a current rush to secure new state licenses to a) capture additional revenues and b) leverage national marketing spend. Sports betting market access is achievable given larger number of casinos in most states.
Wide product offering and ability to capture the greatest share of wallet. Products include sports betting, iGaming, DFS, bingo, poker, horse racing, Live dealer. iGaming is particularly important addition to sports betting and DFS given better economics.
Leading product and technology integration. inhouse technology preferred to increase efficiency, flexibility and costs.
Efficient player acquisitions and retention. Leveraging existing player database from bricks and mortar, Daily Fantasy Sports, media lowers average customer acquisitions costs. For example, MGM has a 5.4x Marketing ROI on existing MGM customers. Leading loyalty programs. Media and content relationships such as strategic partnerships with leagues, teams and media are also important to develop content and attract/retain customers.
Around one third of the companies
in our Index are so called “Picks and Shovel” companies that generally provide
a service to the consumer branded companies in the industry.
These include technology
companies that provide the player account management (PAM) platform or other
technology services. Some technology companies charge based on a percentage of
revenue; enjoy high margins and are highly valued by investors.
One of the companies in the index
provides sports betting data and other has a “live dealer” product that
seamlessly integrated into their customer platform.
Media that is tailored to sports
betting content is on the rise. One the larger casinos companies in our index
has taken a meaningful stake in a leading media company that appeals to the
sports betting demographic, which lowers the company’s customer acquisitions
There is a growing importance of online
sports betting to media/leagues with betting driving:
- Higher audience engagement
- Higher ratings
- Rising ad dollars and spend
- Increasing values for media rights
- Rising franchise, team and league values.
Affiliate are companies provide
gaming content that then direct customers to a consumer website or application.
- The value of equities and
equity-related securities can be affected by daily stock and currency market
- Investors' capital is fully at
risk and investors may not get back the amount originally invested
- Exchange rate fluctuations
could have a negative or positive effect on returns
- Please note this is not an
exhaustive list of risks. Other risks may apply.
Betting and iGaming UCITS ETF
The Fischer Sports Betting &
iGaming UCITS ETF ‘BETS’ seeks to offer exposure to the rapidly growing global
sports betting and iGaming industry.
The BETS ETF tracks the Solactive
Fischer Sports Betting and iGaming Index which is focused on companies that
derive significant revenue from Sports Betting and iGaming (online activities
that include poker and online casinos games such as blackjack, slots and
fantasy sports). Companies include B2C online-focused brands that have exposure
to a wide range of online gaming products; omnichannel companies with bricks
and mortar casinos with an increasing emphasis on online business; and service
providers such as technology platform, sports data providers, media and
affiliate marketing companies.
Europe’s first Sports
Betting and iGaming ETF
This will be Europe’s first
Sports Betting and iGaming ETF, and European investors’ first opportunity to
access the rapidly growing global sports betting and online industry via an
An expanding market due to
Goldman Sachs* expects the US
sports betting and iGaming market to expand 23x from $2b in 2020 to $53b in
2033. Globally, the industry is expected to grow by 11% pa over the next
fiveyears, according to H2 Capital**. Regulatory changes allowing US states to
legalise sports betting and iGaming, in various forms, has been the major
growth catalyst whilst Europe and Asia are also high growth markets. *Goldman
Sachs Equity Research - 22/03/21; **H2 Global All Product Summary - 06/04/21
Growth drivers of the
Besides the regulatory
environment, growth drivers of the sports betting market include a wider social
acceptance of sports betting as an entertainment activity; sports betting
support from sports leagues, teams and media companies; technological
improvements that allow an enhanced online experience; and more generally,
greater time spent on mobile devices.
Risks of investing
As with all investments you
should be fully aware of the risks of trading ETFs:
- Thematic ETFs are exposed to a limited number of
sectors and thus the investment will be concentrated and may experience high
- When you trade ETFs, your capital is fully at
- Past performance is no guarantee of future
- Exchange rate fluctuations can have both
positive and negative effects on returns
- Further risks are disclosed in the KIID and
For a detailed list of
risks, please consult the KIID and prospectus
(29/05/20 – 10/05/21)
Index performance data is based on back tested index
data Back testing is the process of evaluating an investment strategy by
applying it to historical data to simulate what the performance of such
strategy would have been. Back tested data does not represent actual
performance and should not be interpreted as an indication of actual or future
performance. Past performance for the index is in USD. Past performance is not
an indicator for future results and should not be the sole factor of
consideration when selecting a product. Investors should read the prospectus of
the Issuer (“Prospectus”) before investing and should refer to the section of
the Prospectus entitled ‘Risk Factors’ for further details of risks associated
with an investment in this product. Source: Fischer Gaming/Bloomberg. Data as of 10.05.2021.
To learn more about our Sports Betting ETF, visit our fund page here.