For investors looking for broad exposure to the gaming industry the Market Vectors Gaming Index ETF (NYSEARCA:BJK) will do just the trick. The fund seeks to replicate the performance of the Market Vectors Global Gaming Index. This index is a rules-based, modified capitalization weighted, float-adjusted index intended to give investors exposure to the overall performance of the global gaming industry. The fund currently has 46 holdings from around the world and will offer investors significant exposure to the Macau gaming industry. The Macau gaming industry has been a hot area for investors as the region has sustained high growth rates over the last couple of years. I would like to highlight some key positions below:
|Holding Name||% of Net Assets|
|Sands China Ltd (1928 HK)||8.44|
|Las Vegas Sands Corp. (NYSE:LVS)||8.03|
|Wynn Resorts Ltd (NASDAQ:WYNN)||7.13|
|MGM Resorts International (NYSE:MGM)||3.25|
|Melco Crown Entertainment (MPEL)||2.81|
Las Vegas Sands Corp.
Las Vegas Sands Corporation is an integrated resort developer that offers world-class casinos, entertainment, restaurants and convention facilities. The company's properties include The Venetian, The Palazzo, Sands Bethlehem, and Marina Bay Sands located in Singapore's downtown Marina Bay district. The company also majority owns Sands China Ltd. Sands China Ltd currently owns an array of properties on Macau's Cotai Strip, including The Venetian Macau, Sands Cotai Central, and the Four Seasons Hotel Macau. Sands China Ltd also owns Sands Macau on the Macau Peninsula. Las Vegas Sands currently trades at 31 times earnings and sports a 2.5% dividend yield. The company just announced it will report its first quarter results on May 1, after the market close.
Wynn Resorts Ltd
Wynn Resorts is an owner and operator of destination casino resorts. The company currently owns Wynn Las Vegas, on the strip in Las Vegas, and Wynn Macau, located in the Macau region of the Peoples Republic of China. Today, the company reported $2.03 earnings per share versus analyst consensus estimates of $1.38. The company saw a 4.4% increase in revenues from its Macau operations. The company currently trades at 28 times earnings and pays a 3% dividend yield.
MGM Resorts International
MGM Resorts International operates a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. MGM also has a 51% interest in MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a resort on Cotai.
Disclosure: I am long LVS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.