GGME: INVESCO NEXT GEN MEDIA AND GAMING ETF
Understanding the Invesco Next Gen Media and Gaming ETF (GGME)
The Invesco Next Gen Media and Gaming ETF (ticker: GGME) is designed to invest in companies involved in the next generation of media and gaming. This ETF focuses on a specific sector of the market, providing exposure to various companies within that space.
What this ETF is trying to do
GGME seeks to track the performance of companies related to media and gaming. Based on its top holdings, the fund includes major technology and entertainment names. Because it focuses on a specific industry, its performance will depend heavily on how the media and gaming sectors perform.
Top Holdings
The following are some of the largest companies held by this ETF (note that this is a partial list):
• Advanced Micro Devices Inc (9.87%)
• Meta Platforms Inc Class A (8.61%)
• NVIDIA Corp (8.37%)
• Apple Inc (7.93%)
• Netflix Inc (7.05%)
• Cloudflare Inc (4.77%)
• MediaTek Inc (4.36%)
• Qualcomm Inc (4.33%)
• Spotify Technology SA (4.25%)
• Adobe Inc (4.05%)
*Holdings are subject to change over time.*
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes distributions).
• Year-to-Date (YTD): The price return is approximately 11.86%, while the total return is approximately 11.94%.
• One-Year: The price return was approximately 2.19%, and the total return was approximately 2.27%.
• Three-Year: The price return was approximately 100.20%, and the total return was approximately 100.89%.
• Five-Year: The total return over five years was approximately 26.34%.
An estimated price from roughly one year ago was $65.21, compared to the current price of $66.64.
Income and distribution explanation
This ETF provides some level of cash distributions. The current distribution yield is approximately 7.43%. This number represents the cash distributions relative to the ETF's price.
It is important to remember that a distribution yield is not the same as total return. The fund has an income rating grade of "B." Over the last 12 months, there were 2 distributions, which are described as being irregular or less frequent.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the erosion-risk score, which is 94. This is labeled as "Stable / sideways" with a "good" severity level. There is no severe erosion-risk flag for this ETF.
Pros
• Strong Three-Year Growth: The total return over the last three years has been approximately 100.89%.
• Stable Risk Profile: The erosion-risk score suggests the price trend has been relatively stable.
Cons
• Irregular Income: Distributions are not made on a regular, predictable schedule.
• Sector Concentration: Because it focuses on media and gaming, the fund may be more sensitive to changes in those specific industries.
Beginner takeaway
GGME is an ETF that focuses on the media and gaming industry. While it has shown significant price growth over a three-year period, investors should note that its cash distributions are irregular. Always remember that a high distribution yield does not guarantee the same level of total return, and sector-specific funds can behave differently than the broader market.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ADVANCED MICRO DEVICES INC | AMD | 9.87% |
| 2 | META PLATFORMS INC CLASS A | META | 8.61% |
| 3 | NVIDIA CORP | NVDA | 8.37% |
| 4 | APPLE INC | AAPL | 7.93% |
| 5 | NETFLIX INC | NFLX | 7.05% |
| 6 | CLOUDFLARE INC | NET | 4.77% |
| 7 | MEDIATEK INC | n/a | 4.36% |
| 8 | QUALCOMM INC | QCOM | 4.33% |
| 9 | SPOTIFY TECHNOLOGY SA | SPOT | 4.25% |
| 10 | ADOBE INC | ADBE | 4.05% |