Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

A handful of exchange-traded funds appear to be among the largest institutional winners from the more than 360% rally in shares of GameStop Corp so far this week as the video game retailer remains at the center of a showdown between retail investors and short-selling hedge funds.

The $189 million Wedbush ETFMG Video Game Tech ETF jumped more than 16.1% Wednesday, pushing it up approximately 25% since the start of the week. The $758 million SPDR S&P Retail ETF soared 12%, powering it to a 21.9% gain for the week-to-date.

The relatively small number of winners among funds from the outsized rally in GameStop reflects the company’s relatively small ownership base among mutual funds, leaving the prime vehicle for Americans’ retirement savings mostly unaffected by GameStop’s rally.

Story continues below advertisement

Overall, just 367 mutual funds had a long position in GameStop as of their most recent reporting period, according to Lipper data, while 2,151 funds reported a long position in competitor Best Buy Co Inc. Apple Inc, one of the most widely held stocks on Wall Street, is owned by 5,641 mutual funds.

The small mutual fund ownership base is one reason why GameStop shares notched one of the most high-profile surges in Wall Street memory, analysts said.

“If there’s a large institutional investor base held within mutual funds the stock is likely to be less volatile as these are often core long-term positions. Stocks that are held more by retail investors could see hot money move in or out relatively quickly,” said Todd Rosenbluth, director of mutual fund research at CFRA.

Few large funds that own shares in GameStop have a big enough position in the company to sway their overall performance.

The Fidelity Intrinsic Opportunities fund, for instance, owns 9.75% of GameStop’s outstanding shares, according to Lipper data. Yet that position accounts for just 0.64% of the fund’s assets. The fund is up 5.6% for the year-to-date, approximately 1.5 percentage points less than the benchmark Russell 2000 index.

The BlackRock Advantage Small Cap Core fund holds 0.03% of its assets in GameStop, according to Lipper.

Overall, BlackRock, the world’s largest asset manager, owned about 9.2 million shares in GameStop as of Dec. 31, 2020, spread over several funds. If BlackRock has not since sold any of those shares, its stake’s value is up $2.4 billion since the start of the year.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies