Is ESPO a good ETF?
ESPO is the VanEck Video Gaming and Esports ETF from VanEck. It tracks the MVIS Global Video Gaming and eSports Index (AUD). We classify it under Intl, Thematic, and Tech. With about $73 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, ESPO has delivered 10.72% a year over 5 years (ranked 46th of 188 ETFs we track), 16.92% a year over 3 years (ranked 46th of 226 ETFs we track), and -17.93% a year over 1 year (ranked 298th of 308 ETFs we track). Its strongest showing is over 3 years, where it sits in the top 20% of all ETFs we track.
The management fee of 0.55% is on the higher side. For comparison, similar ETFs average around 0.48%. It pays a high 13.48% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been elevated (annualised standard deviation around 19.36%), meaning noticeably larger swings than the broad market. Its 5-year Sharpe ratio of 0.46 is weak — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-20% returns over 3 years (46th of 226 ETFs we track).
- High 13.48% income yield — good for investors who want regular cash flow.
Things to watch
- Has lagged most peers over 1 year (298th of 308).
- Pricier than similar ETFs, which average around 0.48%.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.46).
- Highly concentrated single-theme bet — keep the position size small.
What ESPO's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Concentrated in technology and high-growth innovation. The highest long-run growth potential on offer, paired with the deepest drawdowns.
- Market regime
- Very sensitive to interest rates and sentiment: powers ahead when money is cheap and optimism is high, and falls hardest when rates rise or risk appetite sours. Low dividends, high volatility.
- In a portfolio
- A long-horizon, high-conviction holding for investors with a strong stomach. Size the position so a 40-50% drawdown wouldn't derail your plan.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.