Many ASX ETFs have started 2025 poorly.
The BetaShares Australia 200 ETF (ASX: 200), which tracks the S&P/ASX 200 Index (ASX: XJO), is up a modest 3% for the year to date. Meanwhile, the Vanguard US Total Market Shares Index AUD ETF (ASX: VTS), which tracks the total listed US market, is down 5% for the year.
However, one ASX ETF has stood out from the pack.
The Betashares Video Games And Esports ETF has been among the top-performing ASX ETFs this year, lifting 18%. Over the past 12 months, it has soared an impressive 72%.This ETF provides exposure to a portfolio of 40 leading global video gaming and e-sports companies for a management fee of 0.57% per annum.
It is geographically diversified, with 35% of investments listed in Japan, 35% in the US, 18% in China, 7% in South Korea, 2% in Sweden and 2% in Poland. As of 30 April 2025, the top holdings were Roblox (9.8%), Netlease (8.9%), Electronic Arts (8.7%), Take-Two Interactive Software (8.1%), and Nintendo (7.8%).
According to Statistica, revenue in the Esports market worldwide is projected to grow at a compound annual growth rate (CAGR) of 5.56% between 2025 and 2029, reaching US$5.9 billion.
Grand View Research forecasts the global video game market to grow at a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030. This has been attributed to the ongoing trend of online gaming, the emergence of high bandwidth network connectivity, and the continuous demand for 3D games.
Betashares' view is consistent with this forecast, suggesting:
The video games and esports industry has been growing strongly, with industry revenue, profit margins, and the number of global players all forecast to increase in the coming years.
The VanEck Video Gaming and Esports AUD ETF (ASX: ESPO) is also positioned to benefit from this trend.
The ESPO ETF is based on a similar theme. However, it only has 25 holdings, offering less diversification. With an annual management expense of 0.55%, it is a fraction cheaper than the GAME ETF.
For the year to date, the ESPO ETF has risen 14%, underperforming the GAME ETF. Over a 12-month timeframe, it is up 54%, also trailing the GAME ETF's 72% surge.
Despite some variance in performance, both ETFs appear positioned to benefit from strong tailwinds and could continue to outperform the ASX 200 Index for the remainder of 2025.
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