With a helping hand from Macau, the world’s largest gambling hub, the VanEckVectors Gaming ETF (NYSEArca: BJK) is up more than 19% this year and some analysts see more upside coming for gaming stocks.
Jun 18, 2020 While the narrative for Las Vegas has improved considerably, there's still a long way to go. Thus, if you want exposure to MGM Resorts, you should consider casino ETFs. Gaming ETFs invest in stocks of companies that derive a substantial portion of their revenues from the casino gaming industry. These include casino operators as well as companies that provide gaming goods and services to casinos. Many short sellers are rushing to cash out of their bets against casino and gaming stocks as sporting leagues across the world prepare to resume operations and give gamblers more opportunities to. An exchange-traded fund (ETF) is traded on a stock exchange but is made up of other securities that are managed by industry analysts. One of the benefits of a hotel ETF is that instead of having to pick which hotel stock to buy, you can make a single investment and have multiple hotel stocks in your portfolio. Another option is a REIT ETF. For example, the VanEck Vectors Gaming ETF (BJK), which trades on the Nasdaq stock exchange, comprises many well-known global casino companies such as MGM Resorts International, Las Vegas Sands Corp., and Caesars Entertainment Corp.
Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are dominant names in Las Vegas but the companies, two marquee holdings in BJK, are also big players in Macau, levering each to Chinese gambling trends.
“Casino stocks surged Thursday after better-than-expected revenue numbers out of Macau, a special administrative region of China that’s become a gambling mecca. And some strategists say it isn’t time for investors to cash in their chips just yet,” reports CNBC. “Las Vegas Sands is now up 16 percent year to date, MGM Resorts has risen 12 percent and Wynn Resorts has climbed 54 percent. In fact, Wynn is the third-best-performing stock in the S&P 500 this year. On Thursday, Las Vegas Sands saw its biggest rise since the first day of September.”
By Chris Markoch of InvestorPlace
