Another Sports Betting ETF Debuts

Amid ongoing enthusiasm for sports wagering equities, specially among jr. retail investors, a new exchange traded fund (ETF) addressing the section is here.

The iBET Sports Betting & Gaming ETF (NASDAQ: IBET) debuted Tuesday, becoming the second ETF dedicated to iGaming and sports betting stocks. IBET is sponsored by Inherent Wealth Fund LLC, a San Francisco-based asset manager and issuer of thematic and sector-specific ETFs. CEO Jeffrey Kamys, who has more than 15 years have inward the fantasize sports, sports analytics, and sports industries, is managing the unexampled fund.

IBET  is an actively managed ETF that seeks to attain its investment funds documentary past investing, under normal circumstances, at least 80 percent of the fund’s meshwork assets, plus the amount of any borrowings for investiture purposes, inwards securities of companies of any marketplace capitalization, including foreign issuers, that are meshed in the fund’s investment funds theme,” according to the issuer.

The officeholder monetary fund inwards this ecological niche is the Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ), which debuted in Apr 2020 and has $346 trillion in assets under management, as of Nov. 16.

Competition Brewing Between IBET, BETZ

Whether the securities industry tin sustain deuce sports wagering finances remains to follow seen. But piece that gets sorted out, there’s potentiality competition perking 'tween the constituted BETZ and the new IBET.

Few new thematic funds inwards recent storage had timing as well(p) as that enjoyed by BETZ. The Roundhill fund debuted spell many land-based casinos were shuttered past the coronavirus pandemic — a scenario that fortified the online casino’s investment thesis. Additionally, BETZ was well-timed, because multiple members of the fund’s roster went public after the ETF debuted, putting more eyeballs on cyberspace cassino and sports betting stocks.

The new IBET charges 0.79 percent year, or $79 on a $10,000 investment. That’s tetrad basis points in a higher place the disbursal ratio on BETZ. That difference is potential attributable to the fact that IBET is actively managed, spell BETZ tracks an index.

Other Differences Between IBET, BETZ

IBET and BETZ feature other notable differences. For example, the largest holding inward the young ETF — DraftKings (NASDAQ:DKNG) — commands just 3.89 percent of that fund’s weight, spell the biggest factor inwards BETZ — Benjamin Rush Street Interactive (NYSE:RSI) — occupies 5.75 percent of that fund.

IBET’s top out 10 holdings chain of mountains in weights from 2.84 percent to 3.89 percent, spell that facing pages inwards BETZ is 3.59 percent to 5.75 percent. The new ETF has no more cover 10 holdings inwards mutual with its older rival.

IBET also holds some names, including Las Vegas Sands (NYSE:LVS), Melco Resorts & Entertainment (NASDAQ:MLCO), and VICI Properties (NYSE:VICI) that investors don’t readily link up with sports wagering.

“A keep company is deemed to follow intermeshed inwards the Fund’s motif if (i) it derives a significant portion of its revenue (greater than 50 percent of revenue) or securities industry economic value (devotes at least 50 percent of its capital) from the theme of the betting, sports, sports entertainment, and/or iGaming industries and/or engineering or (ii) it has stated its primary quill business sector to be inward products, services, or technologies focused on the musical theme of betting, sports, sports entertainment, and iGaming,” according to Inherent Wealth Fund.

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