Buy individual video-game stocks if you want to select and monitor particular companies; consider a gaming ETF if you prefer a fund to hold a basket of gaming-related businesses. Neither choice is automatically diversified or right for every investor: a gaming ETF can remain concentrated in one industry, and both stocks and funds can lose value. Compare the fund’s holdings, investment method, costs, geographic exposure and trading characteristics with your goals and risk tolerance.
What changes when you buy a stock or an ETF?
A video-game stock represents an investment in one company. Its outcome depends heavily on that issuer’s business and market value, so choosing individual stocks puts more responsibility on you to assess each company and keep up with it.
As an Amazon Associate I earn from qualifying purchases.
A gaming exchange-traded fund (ETF) holds a portfolio of securities and trades on an exchange. It gives you exposure to the fund’s holdings rather than just one issuer, but the basket may still be concentrated in gaming. The fund’s name alone does not tell you how many companies it holds, how much it invests in each, or which countries it covers.
Gaming ETFs are not all built the same way
Two U.S.-listed examples show why it is important to check a fund’s actual strategy rather than treating “gaming ETF” as one uniform product.
#1 Best Overall
| Fund | Investment approach | What its disclosures say |
|---|---|---|
| Global X Video Games & Esports ETF (HERO) | Seeks results generally corresponding, before fees and expenses, to the Solactive Video Games & Esports Index. | Global X’s April 1, 2026 summary prospectus describes eligible businesses in game development and publishing, content distribution and streaming, esports leagues and teams, and related hardware. It reports 0.50% annual operating expenses. |
| Roundhill Video Games ETF (NERD) | Actively managed. | Roundhill’s 2026 summary prospectus says the fund normally invests at least 80% of net assets, plus investment borrowings, in video-game companies and expects 25 to 75 issuers. It is classified as non-diversified. |
These examples are not an exhaustive list of products, and availability depends on where you live. Read a fund’s prospectus and current holdings before investing. HERO’s issuer fund page reports that its holdings can change.
How to compare the choices
Concentration and company exposure
With an individual stock, your position is tied to one issuer. With an ETF, look at the number of holdings and their weights: a basket reduces dependence on any one company only to the extent that the portfolio actually spreads its exposure. It does not remove risks shared by gaming businesses.
Rank #2
- Comes with secure packaging
- Easy to read text
- It can be a gift option
For a dated illustration, Global X listed these HERO top holdings and weights on September 25, 2026: Konami Group Corporation, 6.91%; Nintendo, 6.81%; Unity Software, 6.37%; Nexon, 6.24%; Capcom, 5.94%; Square Enix, 5.34%; Roblox, 5.33%; NetEase ADR, 5.23%; Take-Two Interactive, 5.06%; and International Games System, 5.02%. These are a snapshot, not a guarantee of current or future allocations. The issuer reported $62.29 million in net assets and a 0.50% total expense ratio on that date; both figures can change.
Investment method and oversight
If you select stocks, you decide which issuers to own and must decide when to review or change those positions. An index-linked fund such as HERO follows an index-based approach, while an actively managed fund such as NERD delegates security selection to its manager. Delegation does not remove the need to evaluate the fund’s mandate, holdings, and performance.
Ongoing expenses and trading costs
An ETF’s expense ratio is an annual fund operating expense, not necessarily the full cost of investing. HERO’s April 2026 prospectus reports total annual operating expenses of 0.50%. Its hypothetical cost example estimates $51 for one year, $160 for three years, $280 for five years and $628 for ten years on a $10,000 investment, assuming a 5% annual return and unchanged expenses; the example excludes customary brokerage commissions.
Trading can add other costs. The HERO prospectus warns that brokerage costs and bid-ask spreads can affect results. ETF shares trade at market prices, which may be above or below net asset value (NAV); investors may buy at a premium or sell at a discount. Turnover can also generate transaction costs and may affect taxable-account results. HERO reported 30.12% portfolio turnover for the most recent fiscal period stated in its 2026 summary prospectus. NERD reported 64% turnover for the fiscal year ended December 31, 2025, in its 2026 summary prospectus.
Geographic exposure and trading conditions
Do not assume a fund invests only in U.S. companies. NERD’s prospectus says it may hold non-U.S. securities and reports exposure to Japan, South Korea, Hong Kong and China as of March 31, 2026. Review current country and issuer weights, and consider that foreign-market hours and liquidity may affect ETF trading.
Free tools Windows power users keep installed
One-click scans. No signup required.
Risks shared by gaming investments
Fund disclosures identify risks for video-game businesses that can affect both individual stocks and funds holding them. These include competition, changing consumer preferences, limited product lines or resources, rapid product obsolescence, and reliance on intellectual-property rights. A fund can spread exposure among issuers, but it cannot eliminate risks affecting the industry as a whole.
Best Value
ETF investors also face fund-specific and trading risks, including market prices that differ from NAV, bid-ask spreads, premiums or discounts, and international-securities exposure. Review those risks alongside the underlying companies’ business risks.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What historic performance can—and cannot—tell you
Performance depends on the measurement period. Global X’s 2026 summary prospectus reports HERO’s return before taxes as 27.55% for the year ended December 31, 2025, 0.08% annualized for the five years ended on that date, and 12.67% annualized from the fund’s October 25, 2019 inception through December 31, 2025.
For context, the same prospectus reports that through December 31, 2025, the MSCI ACWI Index (NR) (USD) returned 22.34% over one year, 11.19% annualized over five years, and 12.79% annualized since HERO’s inception. The Solactive Video Games & Esports Index (NR) (USD) returned 27.96% over one year, 0.52% annualized over five years, and 13.17% annualized since HERO’s inception through that date. These are different measures: HERO is a fund, while the others are indexes, with different fee and tax treatment.
Global X’s issuer page displays a separate set of HERO returns through June 30, 2026: -23.26% at NAV for one year, 7.95% annualized for three years, and -4.32% annualized for five years. Those figures have a different endpoint and should not be combined with the December 31, 2025 comparison. The fund’s 2026 summary prospectus states: “The Fund’s past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.”
A practical way to decide
- Consider individual stocks if you want to choose specific companies, accept issuer-level risk, and are prepared to research and monitor them.
- Consider a gaming ETF if you want exposure through a portfolio rather than a single issuer and are comfortable with its particular strategy, industry concentration, expenses, and trading risks.
- Before investing, compare the fund’s current holdings and weights, expense ratio, turnover, investment method, geographic exposure, liquidity, and bid-ask spread with the risks you are willing to take.
No product can be judged suitable without knowing your financial circumstances, tax situation, investment horizon, goals, and risk tolerance. The examples here are educational, not a recommendation to buy or sell a security.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
