Eight of the firm’s ETFs have been given ESG makeovers since last November

VanEck is set overhaul its video gaming ETF by adding sustainable metrics after shareholders voted to change out its current benchmark for an ESG equivalent.

Effective 16 December, the $463m VanEck Video Gaming and eSports UCITS ETF (ESPO) will start tracking the MarketVector Global Video Gaming & eSports ESG index instead of the MVIS Global Video Gaming & eSports index.

ESPO’s incoming index excludes companies with what the ISS deems “very severe” violations of social norms, companies not covered by ISS data and those with any revenue exposure to controversial weapons or more than 5% revenue exposure to civilian firearms, tobacco, traditional energy and military equipment.

Incorporating these ESG criteria means ESPO will be upgraded to Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). 

Launched in July, the new benchmark captures 25 companies deriving at least 50% of revenue from video gaming and esports, with a market cap of at least $150m, three-month average daily trading volume of at least $1m, at least 250,000 shares traded per month, capped at 8% per constituent.

Source: VanEck 

The ESG index and its outgoing vanilla equivalent share the same top 10 holdings and have a returns correlation of 98.8% but the non-ESG benchmark has “slightly outperformed” so far in…