I can’t believe this thing exists. I should believe it, but I can’t. If you couldn’t tell from that abbreviated name, “ESPO” does indeed stand for Esports. What we have here boys and girls is a sure-fire ETF. Quick finance 101 session – ETF stands for Exchange Traded Fund. You can read nerd definitions all day long, but essentially this is the grown up version of “don’t put all your eggs in once basket.” These funds can hold shares of Company A, Company B, and Company C through Z.
The reason that this concept is safer is because when Company B’s CEO gets caught on snapchat railing lines of coke at a Fort Lauderdale nightclub, the other 20 companies’ CEOs probably read their kids bedtime stories and woke up early for church. Company B gets crushed, but the fund barely takes a hit. Basically, one company only has so much influence on the price, whether it’s doing good or bad. That amount of influence depends on the fund’s asset allocation. In the case of $ESPO – it’s just a long list of winners.