What this ETF is trying to do

The GLOBAL X VIDEO GAMES & ESPORTS ETF (ticker: HERO) is designed to invest in the video games and esports industry. It provides exposure to companies involved in making, publishing, and managing digital games and competitive gaming.

What the numbers show

The current price of HERO is $27.63. When looking at how the share price has moved, there are different ways to measure performance:

• Year-to-Date (YTD): The price return is down approximately 7.15%. The total return (which includes distributions) is down approximately 6.67%.

• One-Year: The price return has declined by approximately 17.20%. The total return for the year is down approximately 15.85%.

• Three-Year: Over a longer period, the price return has increased by approximately 49.34%, and the total return has increased by approximately 55.06%.

To understand the one-year change, we can look at an estimated price from roughly one year ago, which was approximately $33.37.

Top Holdings

The ETF holds a variety of companies. Because the list provided is partial, these are only the largest holdings:

• KONAMI GROUP CORP (7.16%)

• UNITY SOFTWARE INC (6.68%)

• NINTENDO CO LTD (6.64%)

• CAPCOM CO LTD (5.84%)

• NETEASE INC ADR (5.45%)

• INTERNATIONAL GAMES SYSTEM CO LTD (5.35%)

• NEXON CO LTD (5.29%)

• SQUARE ENIX HOLDINGS CO LTD (5.19%)

• TAKE-TWO INTERACTIVE SOFTWARE INC (5.11%)

• ROBLOX CORP (4.93%)

Please note that holdings can change over time.

Income and distribution explanation

This ETF provides some cash distributions to investors. The distribution yield is approximately 1.67%. This number describes the cash paid out relative to the ETF's price.

The distributions for this fund are described as "irregular" or "less frequent," with only two payouts recorded in the last 12 months. It is important to remember that a distribution yield is not the same as a total return.

NAV erosion explanation

The data shows an erosion-risk score of 55, which is labeled as "moderate price erosion." This means the market price of the shares has shown some downward movement.

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.

Pros

• The ETF has shown strong total returns over a three-year period (approximately 55.06%).

• It provides exposure to a specific, well-known sector: video games and esports.

Cons

• The ETF has experienced a share-price decline over the last year (approximately -17.20% price return).

• The distribution frequency is irregular, meaning it does not pay out cash on a steady, predictable schedule.

Beginner takeaway

HERO focuses on the gaming industry. While it has seen significant growth over three years, it has faced a share-price decline over the past year. Investors should note that while the fund pays some distributions, they are infrequent, and the fund currently shows a moderate risk of price erosion.