Roundhill Sports Betting ETF Shifting to Active Management
Posted on: June 16, 2026, 12:51h.
Last updated on: June 16, 2026, 12:51h.
- The Roundhill Sports Betting ETF will soon become an actively managed fund
- It currently tracks a Morningstar index
- The ETF is the first dedicated to iGaming and sports wagering equities
The Roundhill Sports Betting & iGaming ETF (NYSE: BETZ), the first exchange traded fund (ETF) focusing on iGaming and sports wagering stocks, will soon shed its label as a passive fund.
On Thursday, June 18, BETZ will become an actively managed ETF and halt tracking the Morningstar Sports Betting & iGaming Select Index — its current benchmark. New York-based Roundhill made the announcement on Monday.
The Fund will continue to focus on the sports betting and iGaming industry. Its holdings will generally include companies involved in online and retail sports betting, online casino gaming, and the technology and services that support them,” according to the issuer.
Roundhill didn’t provide a reason for shifting BETZ to an active ETF from its current passive posture.
BETZ History
The Roundhill fund debuted in June 2020, capturing lightening in a bottle as the live and legal US sports betting landscape was rapidly expanding after the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018 and also because when the ETF came to market, land-based casinos across the country were closed due to the coronavirus pandemic.
At various points in 2021, BETZ had more than $400 million in assets under management and even flirted with $500 million, but that was as sports betting equity mania swept over markets, sending stocks such as DraftKings (NASDAQ: DKNG) and Penn Entertainment (NASDAQ: PENN) raising higher.
That “bubble” popped in 2021 and as some of the marquee domestic sports wagering stocks slumped, retail investors lost enthusiasm for the space with some pulling capital from BETZ. Today, the 30-stock ETF has $51.37 million in assets under management, according to issuer data.
To its credit, BETZ has vanquished competition in the betting ETF space as the fund is the only remaining ETF dedicated to wagering stocks. Other ETFs that hold casino, iGaming and sports wagering equities also feature exposure to other internet and leisure themes.
What to Expect When BETZ Goes Active
At this juncture, forecasting changes, if anything, to the BETZ roster when the fund converts to actively managed status is difficult because Roundhill hasn’t provided details to that effect. One certainty is that active funds have more flexibility as they’re not confined by the rules laid out by indexes.
So it’s possible that when BETZ goes active, the managers can tinker with the lineup, adding or trimming sports betting exposure or allocations to international stocks, but for now that’s just speculation.
Entering today, the ETF’s largest US-traded holdings were Rush Street Interactive (NYSE: RSI), Super Group (NYSE: SGHC) and DraftKings. That trio combines for nearly 20% of the BETZ roster.
No comments yet