Enjoying the smaller cap portfolio commentary especially! 2 questions. I am interested in your views on the best way to get exposure to video gaming - ETFs HERO or ESPO or SEMI ? Is your AUD/USD view still 80c early 2022? Quite a few commentators are calling a drop into the 60c/50c in 2022 with a fall in the iron ore price/China building boom coming off?
Of the ETF’s you mentioned I prefer the Vaneck Videogaming Esport ETF (ESPO US) it’s larger and more diverse, an aggressive alternative is the Hong Kong listed Tencent (700 HK) which has halved due to issues within China. The other way to play the theme is via advertising, and The Trade Desk (TTD US) which we own in our International Equities Portfolio is a great way to play that.
We remain bullish the $A into 2022 but as we’ve said a dip towards 70c wouldn’t surprise, as for the demise of iron ore its largely “old news” and hence built into markets.