UPDATE: Three thematic ASX ETFs are racing ahead of the market, delivering remarkable returns in 2025 as investors seek exposure to emerging sectors. As of now, the ASX 200 has risen only 5.64%, while these ETFs are outperforming significantly.
The Betashares Video Games and Esports ETF (ASX: GAME) has emerged as a standout performer, surging over 30% this year. This thematic fund invests in a portfolio of leading global video gaming and esports companies, primarily located in the United States, Japan, and China. According to Betashares, industry revenue and player numbers are projected to rise, making this ETF an enticing option for investors betting on future growth.
Meanwhile, the Vaneck Global Defence ETF (ASX: DFND) has capitalized on heightened global tensions, skyrocketing an impressive 51.46% since the start of the year. This fund focuses on major companies involved in aerospace, defence, and related sectors, which are often underrepresented in traditional benchmarks. With 50.8% of its holdings based in the United States, this ETF reflects the increasing demand for defence-related investments.
Also making waves is the Betashares S&P ASX Australian Technology ETF (ASX: ATEC), which has risen by more than 7% in 2025. While the Australian market is often dominated by banks and mining giants, this ETF offers exposure to key players in the technology sector, including WiseTech Global Ltd (ASX: WTC) and Pro Medicus Ltd (ASX: PME), both holding around 10% of the fund.
Investors are urged to act quickly as the market dynamics shift. The rapid growth of these thematic ETFs reflects a broader trend towards sector-specific investments, catering to those looking to capitalize on innovation and change.
As the year progresses, analysts recommend keeping a close eye on these funds as they may continue to outperform broader market indices. With the potential for substantial returns, these thematic ETFs are not just a fleeting trend but a significant opportunity for savvy investors.
Stay tuned for further developments as these funds evolve in the fast-paced investment landscape. The shift towards thematic investing signals a critical change in how investors approach the market, making it essential to remain informed and prepared.
