Evolve’s e-gaming fund, which grew more than 30% in 2020, has been viewed by some as vulnerable to a post-pandemic withdrawal. Lala argues that it won’t because even when people go back to work and don’t have that much time to play at home, they still have their smartphones, which gives these publishers a bigger market. He notes that there are only 200 million consoles in the world, but there are more than 4 billion smartphones – with potential growth of another 3.5 billion – so publishers will continue to grow their market.
With the advent of 5G, which will enable faster uploads and downloads and richer graphics, and the connection of e-gaming with social media, it’s not only becoming more available, social and portable, but it’s also poised for more growth.
As in many sectors, the growth of e-gaming will also increase cloud computing. Lala says it only contains 40% of the world’s data, but is expected to grow to around 50% in the next few years as more companies that migrated from their legacy technology during the pandemic continue to move more data to the more efficient cloud migrate technology.
All of this is good news for a company like Evolve ETFs, which is seeing more and more advisors interested in adding disruptive technology to their clients’ portfolios to improve their returns.
“This year I’ve had more conversations with advisors about disruptive innovation within portfolios than I have in the past four years combined,” Lala said, noting that many advisors are looking for the next big disruptor to invest in and develop a fund with eight thematic focus areas called Evolve Innovation Fund (TSX: EDGE) for investors to offer to clients who might be interested before they focus more on a disruptive technology.