Legalization of sports betting by state legislatures is spreading across the United States, with casino/racetrack companies Churchill Downs, Inc. and Penn National Gaming already in on the action. Individual investors are able to play this trend, as well as capitalize on wagering at established foreign sports books, by buying a brand-new exchange traded fund, or ETF, with the symbol BETZ. The BETZ ETF endeavors to track the Roundhill Sports Betting & iGaming index and it is the first ETF with the theme of international online betting and sports wagering.
(An ETF owns a portfolio of stocks or bonds and trades on a stock exchange throughout the day just like an individual corporate stock.)
BETZ began trading on June 3, 2020, and was an immediate hit, especially with traders on the Robinhood app so popular with younger people. By the close of its second day of trading, 8,600 Robinhood users had purchased BETZ, which was a 273% increase from the first day of trading. By June 12, BETZ had $70 million invested in it.
Following are the top ten BETZ holdings, and these account for about 55% of total holdings:
| Weight | Name | Ticker | Thematic Relevance | Country |
| 8.72% | GAN LTD | GAN | Technology | Britain |
| 6.95% | DRAFTKINGS INC | DKNG | Sportsbook | United States |
| 6.31% | FLUTTER ENTERTAINMENT PLC | FLTR LN | Sportsbook | Ireland |
| 6.19% | KINDRED GROUP PLC | KINDSDB SS | Sportsbook | Malta |
| 6.15% | GVC HOLDINGS PLC | GVC LN | Sportsbook | Isle Of Man |
| 4.41% | PENN NATIONAL GAMING INC | PENN | Casinos | United States |
| 4.33% | SCIENTIFIC GAMES CORP | SGMS | Technology | United States |
| 4.16% | TABCORP HOLDINGS LTD | TAH AU | iGaming | Australia |
| 4.13% | OPAP SA | OPAP GA | iGaming | Greece |
| 4.04% | CHURCHILL DOWNS INC | CHDN | Sportsbook | United States |
This article is informational and is not a recommendation to buy BETZ. As with investing in any equity, BETZ is potentially risky owing to price fluctuations. Moreover, its newness means it has very little track record. The ETF’s expense ratio of 0.75% is also a consideration. Therefore, individuals should exercise due diligence before buying.
(Full disclosure: I do not currently have a position in BETZ and was not compensated in any way to write this article.)
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