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HERO - ETF AI Analysis

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HERO

Global X Video Games & Esports ETF (HERO)

Rating:53Neutral
Price Target:
HERO, the Global X Video Games & Esports ETF, has a solid but not top-tier rating, mainly driven by strong, profitable gaming leaders like NetEase, Capcom, and KONAMI, which show robust revenue growth and healthy financials. Well-known names such as Electronic Arts also add positive momentum, though high valuations and some legal and technical risks, plus weaker, less profitable holdings like Roblox and Unity, prevent the fund from scoring higher. The main risk factor is the ETF’s concentrated exposure to the video games and esports sector, which can make performance more volatile if the industry faces setbacks.
Positive Factors
Targeted Exposure to Gaming Theme
The ETF gives focused access to the global video games and esports industry, which many investors see as a long-term growth area.
Global Diversification
Holdings spread across the U.S., Japan, and several other countries help reduce the impact of weakness in any single market.
Healthy Fund Size
The fund manages a meaningful level of assets, which can support trading liquidity and ongoing fund operations.
Negative Factors
Recent Weak Performance
The ETF has delivered weak returns so far this year and over the last three months, which may signal current headwinds for the theme.
Concentration in Communication Services
A large majority of assets are in one sector, so the fund is highly sensitive to swings in communication services and gaming-related stocks.
Many Top Holdings Are Lagging
Several of the largest positions, including well-known gaming and software names, have shown lagging performance this year, which has weighed on the fund.

HERO vs. SPDR S&P 500 ETF (SPY)

HERO Summary

The Global X Video Games & Esports ETF (HERO) tracks the Solactive Video Games & Esports Index and focuses on companies tied to video games and competitive gaming. It holds well-known names like Electronic Arts and Nintendo, along with other game makers and gaming platforms from around the world. Someone might invest in HERO to tap into the long-term growth of the gaming industry and to get instant diversification across many gaming companies instead of picking single stocks. A key risk is that it is heavily focused on the gaming sector, so its price can swing a lot if gaming stocks fall out of favor.
How much will it cost me?The Global X Video Games & Esports ETF (HERO) has an expense ratio of 0.50%, which means you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because HERO is actively managed and focuses on a specific niche, requiring more research and management compared to passively managed funds. It’s designed to give targeted exposure to the growing video games and esports industry.
What would affect this ETF?The HERO ETF could benefit from growing consumer demand for video games and esports, driven by technological advancements like virtual reality and increasing digital engagement globally. However, it may face challenges from regulatory changes in key markets like China or economic downturns that reduce discretionary spending on entertainment. Additionally, competition within the gaming industry could impact the performance of its top holdings.

HERO Top 10 Holdings

HERO is a pure play on the global gaming world, with most of its firepower in communication services names spread across the U.S. and Asia. Take-Two and Electronic Arts are doing much of the heavy lifting, with both stocks generally rising and helping steady the fund’s recent performance. Unity has been on a strong upswing lately, adding some extra spark despite a choppy year overall. On the other side of the scoreboard, Japanese giants like Nintendo, Konami, and Capcom have been losing steam, acting as a drag on this otherwise growth-focused lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Electronic Arts7.51%$4.64M$51.82B38.78%
70
Outperform
Take-Two7.36%$4.55M$44.01B2.12%
53
Neutral
NetEase6.91%$4.27M$82.18B-2.15%
81
Outperform
Unity Software5.78%$3.57M$13.86B-7.87%
65
Neutral
5.24%$3.24M
Capcom Co4.93%$3.05M¥1.39T-31.02%
69
Neutral
Nintendo Co4.87%$3.01M¥8.13T-50.16%
63
Neutral
Square Enix Holdings Co4.82%$2.98M¥945.45B-30.06%
57
Neutral
KONAMI HOLDINGS4.69%$2.90M¥2.51T-7.83%
70
Neutral
Roblox4.65%$2.88M$39.00B-52.05%
51
Neutral

HERO Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
25.21
Negative
100DMA
25.75
Negative
200DMA
28.17
Negative
Market Momentum
MACD
0.06
Negative
RSI
47.42
Neutral
STOCH
43.69
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HERO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 24.79, equal to the 50-day MA of 25.21, and equal to the 200-day MA of 28.17, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 43.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HERO.

HERO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$62.01M0.50%
53
Neutral
$95.64M0.47%
68
Neutral
$38.85M0.59%
68
Neutral
$14.51M0.50%
57
Neutral
$4.71M0.70%
63
Neutral
$4.02M0.49%
56
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HERO
Global X Video Games & Esports ETF
25.08
-6.68
-21.03%
IBOT
Vaneck Robotics ETF
GAMR
Amplify Video Game Leaders ETF
NERD
Roundhill BITKRAFT Esports & Digital Entertainment ETF
BNGE
First Trust S-Network Streaming and Gaming ETF
ODDS
Pacer BlueStar Digital Entertainment ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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