“Roundhill Investments is launching a new thematic ETF designed to give everyday investors exposure to the world of professional sports,” Axios writes.
Why It Matters: The sports world is evolving, and ways for the common individual to get involved are growing more popular. As Kendall Baker points out, there are two ways to join the action (short of suiting up for the Knicks). You can bet on a team or play fantasy sports to make a short-term move or invest in collectibles or sports-focused ETFs if you have confidence in the broader success of the industry.
MVP’s Top Holdings:
- MSG Sports (9.4%)
- Formula One (9.2%)
- Manchester United (7.6%)
- Juventus F.C. (7.1%)
- Borussia Dortmund (6.1%)
- Liberty Braves (5.0%)
- Nike (4.5%)
- WWE Inc. (4.0%)
- Adidas (3.4%)
- Fenerbahce Futbol (3.3%)
More on Roundhill: This is the investment company’s fifth thematic ETF, which is another way of saying a fund focused directly on a “chosen theme or industry.” As Axios notes, it’s their fourth one associated with sports.
- Others include BETZ (sports betting), NERD (esports) and SUBZ (streaming).
Looking Ahead: Roundhill MBP launches today.
Regarding sports team ownership, here’s an excerpt from Morning Cents October 12, 2020:
“I think sports are safe, cash-flowing oligopolies, which is why billionaires buy teams to protect their wealth. For this [sports team stock] to be interesting, the valuation would need to be very attractive, and I would look at it as a value or dividend stock instead of a growth one.”
Sports teams don’t particularly interest me because of these reasons, unless I believe they’re undervalued for some reason.