VanEck is betting that what started as a slang for reckless online traders can sell an ETF.
The firm is renaming its gaming ETF (BJK) the "VanEck Degen Economy ETF," flipping the once-pejorative term into a marketing pitch for the boom in digital finance, gig platforms and online betting, according to a regulatory filing.
The change takes effect after the market close on April 8, resetting a fund launched in 2008 that has just $23 million in assets. Alongside the new name, the ETF will adopt a revamped benchmark index and a broad investment mandate meant to capture what VanEck calls the emerging "Degen Economy."
"Degen," short for "degenerate," originated in gambling circles and later migrated into crypto and retail-trading communities as a tongue-in-cheek label for people making high-risk, often impulsive bets.
The original gaming ETF targeted casinos, sports betting, lottery services and gaming players. Now the Degen ETF is expanding into companies earning at least 50% of revenue from "Millennial Finance" and "Gig Economy and Online Forums."
"Millennial Finance" includes digital brokerages, neobanks, crypto exchanges and BNPL or buy now, pay later providers. "Gig Economy and Online Forums" targets ride-hailing, delivery apps, freelance marketplaces and community platforms.
The VanEck Gaming ETF is up only about 3% this year, significantly trailing the S&P 500.