Investors have been hit by volatility so far this year. But a diversified ASX ETF can help smooth the share market rollercoaster.
The S&P/ASX 200 Index (ASX: XJO) rose ever so slightly in January before falling in late February.
March and April were marked by volatility as investors tried to keep up with US tariff threats, exemptions and retaliation.
As we approach the middle of May – after all that – the S&P/ASX 200 Index (ASX: XJO) is up 0.83% in 2025.
Despite global economic uncertainty, there have been exchange traded funds that have marched ahead.
Let's look at three examples.
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Vaneck Global Defence ETF (ASX: DFND)
DFND is Australia's first defence-focused ETF and was established in September 2024.
It offers exposure to 28 international companies. These companies focus on aerospace & defence, research & consulting, application software, and electronic equipment & instruments.
For those conscious of investing in such an industry, according to the fund, it excludes companies involved in controversial weapons like anti-personnel mines, biological and chemical weapons, cluster munitions, and white phosphorus.
In 2025, it has risen 33.66% and it is up 57.65% since its initial listing in September last year.
Investors have potentially been attracted to this fund due to rising geopolitical tensions which is driving defence spending.
In fact, since 2014, NATO allies have committed to allocating 2% of their national GDP to defence spending.
VanEck Vectors Video Gaming And eSports ETF (ASX: ESPO)
This fund gives investors exposure to a diversified portfolio of the largest and most liquid companies involved in video game development, esports and related hardware and software globally.
At the time of writing, it is made up of 25 holdings. Its largest exposure is to companies in The United States (34%), Japan (30.3%) and China (17.3%).
You might be familiar with companies like Nintendo, Gamestock or Roblox which are all included in the fund.
Importantly, many of the core holdings of this fund are not listed on the ASX, which makes this ETF attractive to those projecting further growth in the world of eSports, VR and gaming.
It has risen 12.49% so far in 2025.
BetaShares Global Cybersecurity ETF (ASX: HACK)
The objective of this fund is to track the performance of an index (before fees and expenses) that provides exposure to the leading companies in the global cybersecurity sector.
It is made up of 32 holdings, with a majority exposure to US based companies (78.2%).
The logic behind investing in this fund is simple – with cybercrime on the rise, the demand for cybersecurity services is expected to grow for the foreseeable future.
The fund has risen 5.84% so far this year, and more than 30.55% in the last 12 months.
