These two ASX exchange-traded funds (ETFs) represent vastly different global industries — one that has fun and frivolity at its heart while the other is deadly serious — but both have ripped up the charts over the past year.
Let's check them out.
Video Games and Esports ETF (ASX: GAME)
The GAME ETF is trading at $20.38 per unit, up 0.89% on Tuesday and up 80% over the past 12 months.
As you might have guessed, GAME ETF is leveraging the worldwide video gaming craze to deliver outstanding returns for investors.
The GAME ETF is invested in 37 shares and tracks the Nasdaq CTA Global Video Games & Esports Index.
The bulk of its investments are in interactive home entertainment devices and facilities, with seven in 10 dollars allocated here.
Other major allocations are application software (15% of funds) and interactive media and services (8% of funds).
The US is the biggest geographic exposure at 40%, followed by Japan at 31%, China at 19%, and South Korea at 6%.
The GAME ETF pays dividends (called 'distributions') once a year.
The management fee is 0.57% per annum.
Since GAME's inception in February 2022, this ASX ETF has produced an average total annual return of 17%.
Vaneck Global Defence ETF (ASX: DFND)
The DFND ETF is $39.17 per unit, down 0.03% today and up 83% over the past 12 months.
VanEck launched the DFND ETF in September last year amid a significant rise in global defence spending.
US President Donald Trump has been pressuring nations around the world, including Australia, to bump up military investment amid ongoing aggression from Russia in Ukraine, and China's increased assertiveness and ambitions to reclaim Taiwan as part of its empire.
Research shows global defence spending totalled US$2.46 trillion last year compared to US$2 trillion in 2022.
Back in June, the 32 nations of NATO got together and agreed to President Trump's request to increase defence spending to 5% of gross domestic production over the next 10 years. That's a massive increase from the 2% of GDP that NATO is spending now.
This ASX ETF holds 32 shares and tracks the MarketVector Global Defence Industry (AUD) Index.
More than 70% of funds are invested in aerospace and defence systems. Other major allocations are professional services at 15%, software at 8%, and machinery at 5%.
The US dominates the geographic exposure with almost one in every two dollars of DFND's investment funds parked there.
Other major allocations include South Korea at 12%, France at 10%, Italy at 8%, and Sweden at 6%.
The DFND ETF pays distributions once per year.
The management fee is 0.65% per annum.
Since its inception in September 2024, this ASX ETF has delivered an average total annual return of 93%.
