UPDATE: Three thematic ASX ETFs are making headlines in 2025, dramatically outperforming the broader market. The ASX 200 Index has risen just 5.64% this year, while these funds are surging ahead, offering investors exciting opportunities in niche sectors.
The Betashares Video Games and Esports ETF (ASX: GAME) stands out with a staggering increase of over 30% in 2025. This ETF targets leading global video gaming and esports companies, primarily based in the United States, Japan, and China. According to Betashares, industry revenue and the number of global players are expected to rise sharply, making this ETF a potential hot spot for investors betting on future growth.
Meanwhile, the Vaneck Global Defence ETF (ASX: DFND) has surged an impressive 51.46% since the start of the year. Driven by ongoing global conflicts, this ETF provides exposure to major companies in the aerospace and defense sectors, which are often underrepresented in traditional benchmarks. Currently, the fund comprises 31 holdings, with 50.8% of its investments focused in the United States.
Additionally, the Betashares S&P ASX Australian Technology ETF (ASX: ATEC) has shown notable growth of over 7% this year. Despite the dominance of financial stocks in the Australian market, ATEC exposes investors to key tech sectors, including information technology and medical technology. The fund includes 42 holdings, with significant investments in companies like WiseTech Global Ltd (ASX: WTC) and Pro Medicus Ltd (ASX: PME).
These developments present a unique opportunity for investors looking to capitalize on emerging trends in technology and defense. As the market evolves, these thematic ETFs could provide substantial returns, making them worthy of consideration for any investment portfolio.
What’s Next? Investors should keep a close watch on these ETFs as market conditions continue to develop. With the potential for rapid growth in these sectors, the next few months could bring even more significant changes to their performance.
Stay informed and ready to act as these trends unfold, and consider discussing these ETFs with your financial advisor to explore how they might fit into your investment strategy.
