The past couple of months have been memorable for ASX Investors. Several ASX 200 stocks and ASX ETFs have rallied strongly.
The S&P/ASX 200 Index (ASX: XJO) is up 14% since its April low. Among the top-performing ASX 200 stocks have been Pro Medicus Ltd (ASX: PME) and Lovisa Holdings (ASX: LOV), which have soared 58% and 41% over that time frame.
Several exchange-traded funds (ETFs) have also rebounded favourably. The Vanguard US Total Market Shares Index AUD ETF (ASX: VTS) is up 13% since 7 April, while the Vanguard Australian Shares Index ETF (ASX: VAS) is up 15%.
However, 3 thematic ASX ETFs have significantly outperformed the ASX 200 benchmark. Which ETFs are they, and can their run continue? Let's find out.
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Betashares Crypto Innovators ETF (ASX: CRYP)
At the time of writing, the Betashares Crypto Innovators ETF has soared 50% since 7 April. For a management expense of 0.67%, this ETF provides diversified exposure to companies involved in the cryptocurrency space. Recent strong performance has been driven by a resurgence in the price of Bitcoin. Since its April low, Bitcoin has rallied more than 40% and now sits back above the psychological US$100,000 barrier.
Recently, the Trump administration has focused on winding back Biden Administration regulations that have been seen to negatively impact crypto investments. This kind of activity could see the Bitcoin price continue to rally, fuelling further potential upside for the CRYP ETF.
Vaneck Global Defence ETF (ASX: DFND)
At the time of writing, the Vaneck Global Defence ETF has climbed 24% since 7 April. For a management fee of 0.65%, this ASX ETF provides exposure to 28 global companies involved in aerospace & defence, research & consulting, application software, and electronic equipment & instruments. Companies involved in controversial weapons like anti-personnel mines, biological and chemical weapons, cluster munitions, and white phosphorus are excluded from the portfolio.
Since listing in September 2024, DFND has consistently beaten the market, driven by heightened geopolitical conflict. Since 2014, NATO allies have allocated 2% of their national gross domestic product (GDP) to defence spending, with at least 20% dedicated to new equipment, according to VanEck. Should these trends continue, the DFND ETF could continue to be a standout performer.
VanEck Video Gaming and Esports AUD ETF (ASX: ESPO)
At the time of writing, the VanEck Video Gaming and Esports AUD ETF is up 20% since 7 April. For a management expense of 0.55%, this ETF provides exposure to 25 of the largest and most liquid companies involved in video game development, esports, and related hardware and software.
These businesses stand to benefit from industry-wide tailwinds. Fortune Business Insights estimates the global e-sports market will grow at a compound annual growth rate of 18% between 2024 and 2023. Companies owned by the ESPO ETF are well positioned to capitalise on this trend, which could send its share price significantly higher.
Those interested in this thematic should also consider the Betashares Video Games And Esports ETF (ASX: GAME). The GAME ETF is also up nearly 20% since 7 April, and has risen nearly 80% over the past year, making it one of the best-performing ETFs on the ASX.
