Macau Casino Stock Etf
The coronavirus outbreak does raise investors’ concerns over the performance of casino stocks and ETFs as Macao has emerged as the gambling capital of the world. Despite Macau's gaming revenue increasing 14% in 2018, casino stocks that have exposure to the Chinese gaming mecca failed to attract investor interest last year due to concerns about a slowing. Casino Stock Symbols. The casino industry is in severe distress right now. The spreading coronavirus and resulting global recession have taken their toll on the casino stocks. Casinos are heavily reliant on Macau, the largest gaming market in the world and the only market in China where casinos are legal.
The VanEck Vectors Gaming ETF (NYSEArca: BJK), the lone exchange traded fund dedicated to casino operators and gaming companies, rallied Monday after getting a lift from news out of the G20 summit held in Argentina over the weekend.
“Shares of Wynn Resorts Ltd., Melco Resorts & Entertainment Ltd., Las Vegas Sands Corp., and MGM Resorts International all rose at least 4.0 percent in early trading in the U.S., while the Bloomberg Intelligence Macau Gaming Index (BIGAMEAC) rose 9.3 percent to a 10-week high,” according to Bloomberg.
Macau Casino Stock Etf
The coronavirus outbreak does raise investors’ concerns over the performance of casino stocks and ETFs as Macao has emerged as the gambling capital of the world. Both stocks were slammed after the outbreak of the virus, which resulted in a plunge in traffic to Macau casinos, from which a large portion of revenue for the companies comes.
BJK, which turns 11 years old next month, tracks the MVIS Global Gaming Index (MVBJKTR). That benchmark “is intended to track the overall performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment,” according to VanEck.
Macau Casino Stock Etf Funds
Over 16 countries are represented in BJK with the U.S. commanding nearly 40% of the fund’s weight, but good news for Macau is helpful to the ETF because it devotes almost 14% of its weight to China. Macau is the only Chinese territory where gambling is legal.
Why Macau Matters
Macau Casino Stock Etf Stocks
Two BJK’s top five holdings, stocks that combine for nearly 15% of the fund’s weight, are Macau operators. Macau is the world’s largest gambling hub.
“And an easier macroeconomic environment further helped the beaten down stocks, as the ‘constructive outcome from Presidents Trump and Xi’s G20 meeting’ should help the stocks recover, at least in the near term, according to Morgan Stanley,” reports Bloomberg.