Are Analysts Right? Will Casino ETF Keep Winning?
Benzinga | Jun 06, 2013 01:57AM ET
It may seem like an odd pick on a day when consumer discretionary, high-beta and emerging markets stocks were all taken to the woodshed, but a buying opportunity could be nearing in the Market Vectors Gaming ETF (BJK).
First, some disclaimers. Yes, BJK finished with a loss of 1.8 percent Wednesday. And yes, that extends the ETF's losses over the past two weeks to 5.2 percent. Still, the ETF is up more than 13 percent year-to-date and that may imply investors that eyeballing BJK today are late to the party. Maybe not.
BJK offers investors that do not want to stock pick the best option for getting exposure to Macau, the world's largest gambling hub. Las Vegas Sands (LVS) sees Macau becoming a $100 billion market.
Nomura raised its 2017 revenue estimate for the only Chinese territory where gambling is legal to $70 billion from $13 billion, according to issuer data , indicating this is not an illiquid ETF. More importantly, as BJK's one-year performance compared to XLY shows, ignoring small ETFs just because they are small is a costly idea.
BY The ETF Professor
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