Despite a bumpy month in April, the S&P/ASX 200 Index (ASX: XJO) is up 4.32% since the start of 2025. Yesterday the market closed 80 points higher on the back of ceasefire news.
As we approach the midpoint of the year, here are two thematic exchange-traded funds that have brought strong returns compared to the ASX 200.
Thematic investing involves targeting a specific sector or market. It can be ideal if there is a specific industry, technology, or emerging market that you want exposure to.
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Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA)
This ETF aims to track the performance of the 50 largest technology and online retail stocks in Asia (ex-Japan).
The fund includes technology giants such as Alibaba, Tencent, and Baidu. It has a large exposure to the Asian semiconductor, hardware and storage sectors.
Chinese, Taiwanese and South Korean based companies make up approximately 86% of the fund.
It has had a strong year, rising 16.17%.
It seems investors have jumped on the opportunity to gain exposure to Asian tech after years of underperformance.
This rise has been influenced by robust policy tailwinds in Asian tech, and semiconductors which are seeing surging global demand due to AI and computing needs.
VanEck Vectors Australian Banks ETF (ASX: MVB)
This thematic ETF is a simple fund made up of seven Australian banks, including the big four.
Australian banks make up a significant part of the Australian economy. The big four all sit inside the top 10 largest companies in the country by market capitalisation.
The VanEck Vectors Australian Banks ETF is ideal for investors wanting exposure to these vital companies, without having to choose just one.
Each of the big four represent approximately 20% of the fund. Macquarie Group Ltd (ASX: MQG) follows with a 16.8% allocation.
The fund has proven a market beating fund in recent years.
So far in 2025, the fund has risen 8.70%.
The success of the fund has been mainly driven by the 22% share price rise this year of Commonwealth Bank of Australia (ASX: CBA).
