Roundhill Sports Betting & iGaming ETF (BETZ)

Overview

The fund discussed here is a distinctive investment vehicle developed by Morningstar, Inc. This fund is characterized by its focus on providing investors with pure exposure to the themes of sports and online betting. It is designed to steer its investments primarily towards securities that comprise its underlying index, striving to cover the domain with significant comprehensiveness. The investment strategy emphasizes not only a direct investment in the component securities of the index but also extends to comparable exposure through various avenues including depositary receipts and other exchange-traded funds (ETFs). It is important to note that the fund is non-diversified, indicating a concentration of investments in the specified theme rather than a broad sectoral investment approach.

Products and Services

• Component Securities Investment

The fund mainly allocates its assets into the securities that form the index it follows. This strategy aims to mirror the index's performance by investing in the companies directly involved in sports and online betting, ensuring that investors gain focused exposure to this specific theme.

• Depositary Receipts

To broaden its exposure and possibly mitigate risks associated with direct investments, the fund may invest in depositary receipts. These financial instruments represent a company's foreign shares, allowing the fund to gain exposure to international markets within the sports and online betting sector, without the complexities of direct foreign investments.

• Investments in Other ETFs

In its efforts to provide comprehensive coverage of the sports and online betting themes, the fund may opt to invest in other ETFs. This approach allows the fund to diversify its investment within the thematic focus, potentially enhancing its performance through exposure to a wider array of securities that are aligned with its investment objective.