The BITA Gaming & E-Sports Giants EW Index (BGAMGE) is designed to track the performance of 20 US-listed companies that have the largest exposure to the gaming and e-sports industry. BGAMGE is the definitive stock index in this lucrative and high-growth niche. The index was launched on the 21st of December 2018 by BITA, a reputable German-based FinTech company that is also the pioneer of end-to-end infrastructure for self-indexing and systematic investing.
Gaming & E-Sports Index launched with a base value of 1000 at inception. After a dull 2019, BGAMGE embarked on a steady uptrend in 2020, breaking above the psychological resistance level of 2000 by July 2020 and settling comfortably above 2600 by the end of the year. The rally not only extended in 2021, but it literally rocketed, with the BGAMGE price spiking to an all-time high of circa 7500 by mid-February 2021. A brief pullback to below 6000 in early March proved unsustainable, with Gaming & E-Sports Index recovering losses and settling at levels of above 7100 in April 2021.
Index Composition and Calculation
Gaming & E-Sports Giants Index is an equally weighted index calculated using the standard Laspeyres formula. The calculation is done intraday with a 1-second resolution, and it is disseminated during the standard US calendar (typically 0930-1630hrs ET). There is a variable divisor included in the BGAMGE computation to ensure that continuity is maintained throughout its pricing when major corporate actions are undertaken, such as mergers, takeovers, and spinoffs.
Gaming & E-Sports Index has 20 constituents, and a company must meet the following conditions to warrant inclusion:
- It must be listed and traded on a recognised stock exchange in the US, having met all the strict conditions.
- It must have a minimum market capitalisation of $20 million.
- It must have a minimum daily traded value (ADTV) of $500,000 over the last 90 days.
- It must derive its revenues from products and services related to the gaming and e-sports industry.
The BGAMGE index is reconstituted and rebalanced quarterly on the third Friday (close of business) of March, June, September, and December. The Determination Date for adjustments occurs five business days before the reconstitution or rebalancing month.
Here are the top 10 constituents of the Gaming & E-Sports Index as of April 2021:
|Liquid Media Group||5.66%|
|Take Two Intact. Sftw.||5.49%|
|Playtika Holding Corp.||5.45%|
|Zynga Class “A”||5.33%|
|Corsair Gaming Inc||5.29%|
|Sea Class “A” Spn 1for1 ADR||5.27%|
Factors Influencing the Price of BGAMGE
The gaming and e-sports industry is growing rapidly but very volatile, with new companies constantly entering the space. Innovation is proving to a major determinant of success or failure in the industry. It is a double-edged sword that can boost a company’s fortune but also destroy it. There is always an appetite for games, but consumer tastes shift at alarming rates, and only truly innovative companies can keep up. For investors, an industry that always innovates poses additional risks – a company can easily be ‘eliminated’ just as fast as another can ‘take off.’
Gaming companies depend on the success of various titles they introduce to the market. But there is even more volatility when it comes to e-sports. Granted, there is an ever-growing audience taking each other on in competitive gaming activities. However, e-sports remains a young industry that is dependent on eyeballs and despite this, there is no reliable streaming platform. These games are yet to make it to prime TV slots, leaving their fate to third-party online streaming platforms.
The year 2020 was great for the gaming and e-sports industry. As populations were forced to remain indoors as part of government efforts to combat the spread of COVID-19, games provided a reliable escape out of the ‘new normal.’ E-sports activities also gained a new online audience even as offline events got cancelled. Additionally, the year also saw the introduction of new consoles by major developers (Sony and Microsoft). This meant that popular new games got instant customers, and e-sport activities attracted increased hype.
Why Trade Gaming & E-Sports Index
BGAMGE constituents are the largest companies in the gaming and e-sports industry. This practically guarantees high liquidity of the index, ensuring that Gaming & E-Sports Index can be traded with efficient prices and low costs.
- Stable Price Action.
BGAMGE is a benchmark stock index whose price action is stable and relatively predictable, except in unusual crisis moments.
- Vast News Coverage.
Gaming & E-Sports Index benefits from massive media coverage owing to its status as the benchmark stock market index for the fast, growing gaming and e-sports industry.
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