There are different types of investment strategies like targeting growth stocks, dividend stocks, or value stocks. Another one of these strategies is thematic investing.
This strategy involves targeting one "theme" or sector that aligns with your values, or you anticipate to see growth.
Essentially you can decide if there is a specific industry, technology, or emerging market that you want exposure to.
One way to do this is through ASX exchange traded funds (ETFs) that group together companies within a theme or sector into one trade.
Let's look at how some of these thematic ASX ETFs have performed this year.
Image source: Getty Images
Vaneck Global Defence Etf (ASX: DFND)
One of the biggest winners for thematic investing this year has been in defensive shares.
The Vaneck Global Defence Etf (ASX: DFND) is up 46.88% so far in 2025.
It provides exposure to 29 global companies involved in aerospace & defence, research & consulting, application software and electronic equipment & instruments, that are typically under-represented in benchmarks.
Increased military and defence spending amongst global conflict has likely contributed to the rise of this fund.
It could be ideal for those who anticipate further investment in this area internationally.
Global X Artificial Intelligence ETF (ASX: GXAI)
As the name suggests, this ASX ETF provides exposure to companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services. It also includes companies that provide hardware facilitating the use of AI for the analysis of big data.
The AI takeover was all the rage in 2024, which saw the technology sector perform extremely well.
Momentum has seemingly slowed this year, as this fund is up just over 3% since the start of the year. However it remains up almost 20% over the last 12 months.
This fund has 85 holdings at the time of writing, which is evenly distributed. No company within the fund makes up more than a 4% holding.
This ASX ETF could be ideal for investors looking to add global AI companies to their portfolio.
Betashares Australian Sustainability Leaders ETF (ASX: FAIR)
This ASX ETF is an example of impact investing. This is a responsible investment strategy that focuses on advancing particular social or ethical causes and generating financial returns.
Sometimes this is also referred to as environmental, social, and corporate governance (ESG) investing.
In the case of FAIR ETF, it includes Australian companies that have passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.
The fund's methodology also preferences companies classified as Sustainability Leaders based on their involvement in business activities aligned to the United Nations Sustainable Development Goals.
This ASX ETF could be ideal for investors looking to invest ethically, rather than just for strictly financial gain.
This year, FAIR ETF has brought solid returns, rising 5.72%. It is up more than 14% over the last 12 months.
