Disruptive Theme of the Week: Top YTD Themes in the Rearview Mirror

There is an old saying that “all that glitters is not gold.” But YTD, both gold and silver ETFs are doing pretty well. At the top of the pile is the Wisdomtree Efficient Gold Plus Gold Miners Strategy Fund (GDMN ), which is up a whopping 127% YTD. The ETF invests in U.S.-listed gold futures contracts and/or global gold mining stocks. Not far behind is the iShares MSCI Global Gold Miners ETF (RING B+) and its sister fund, the iShares MSCI Global SIlver and Metals Miners ETF (SLVP B+), up 98% and 97% respectively. Focused just on silver, the Amplify Junior Silver Miners ETF (SILJ C+) is up 89%, followed by the Global X Silver Miners ETF (SIL B-), up 88%.

Global instability and the need for defense modernization are two key factors driving military spending and this year’s defense stock gains. This is particularly the case in Europe, which is rearming with the goal of becoming less reliant on foreign equipment. In June, NATO also upped its spending goals for the next decade from 2% of GDP to 5% of GDP for its members. This new mandate also includes a spending provision for future-of-defense technologies such as AI, cyber, quantum, robotics, and autonomous vehicles/drones, along with supporting infrastructure.

The Select STOXX European Aerospace & Defense ETF (EUAD ) has been a top ETF play to get exposure to the ramp-up in European defense spending, up 75% YTD. Talk about timing! This relatively new ETF (launched back in October 2024) has been one of the year’s big ETF success stories, growing to over $1 billion in assets under management. The Global X Defense Tech ETF (SHLD ) has been another beneficiary of the defense modernization trend, gathering $3.4 billion in assets and a 67% YTD return. And finally, in the race to space, the Procure Space ETF (UFO ) has delivered strong performance of 46% YTD. It just surpassed the magical $100 million level in assets.

The critical minerals and metals theme has also delivered strong returns this year. Critical minerals and metals consist of materials essential for energy and/or critical from a national security standpoint. In August, the Trump administration proposed $1 billion in funding to promote domestic production of critical minerals and materials to reverse the supply chain dominance by China and other countries.

One of the top performing ETFs in this category is the VanEck Rare Earth & Strategic Metals ETF (REMX B-), up 56% YTD. It is also a behemoth in terms of assets, with $750 million. REMX has more than 30% exposure to China. For investors looking for exposure to the ramp-up of Western capabilities in this area, the Sprott Critical Materials ETF (SETM A-) offers an alternative approach, with only 4% exposure to China and a YTD return of 45%.

Nuclear energy is seeing a huge revival of interest due to its usage as an additional form of clean energy amid rising electricity demand from technologies such as AI data centers and electric vehicles. On May 23, the Trump administration also announced four executive orders aimed at reinvigorating America’s nuclear energy industry. Shuttered nuclear plants are coming back to life with government and corporate support. And nuclear- and uranium-focused ETFs have rallied this year on these promising developments, as investors look for ways to get exposure.

The Global X Uranium ETF (URA B-) is more focused on the fuel behind nuclear, namely uranium mining. It is up 52% YTD. Hybrid approaches have produced strong results this year as well, such as the VanEck Uranium and Nuclear ETF (NLR C), which is up 46%. Finally, for investors looking for pure-play nuclear exposure, the Range Nuclear Renaissance Index ETF (NUKZ ) has delivered compelling returns, up 42%, with only a 14% weight in uranium mining.

Cannabis ETFs have rallied this year on the prospect of the deregulation of cannabis from a schedule 1 drug. The move would give cannabis companies access to traditional banking and lending services and provide more clarity around tax laws for the cannabis industry.

The AdvisorShares Pure US Cannabis ETF (YOLO ) tops the leaderboard, up 35% YTD. But the clock is ticking for many of the underlying holdings, which include nearly bankrupt penny stocks that cannot “officially” restructure. The Roundhill Cannabis ETF (WEED ) and the Amplify Seymour Cannabis ETF (CNBS ) are other ETFs in this category to consider, and all are actively managed.

Video gaming has been one of the surprise thematic winners this year. The stocks have rallied thanks to the success of the Nintendo Switch 2 platform and in anticipation of many high-profile, long-awaited releases such as Grand Theft Auto 6. Other factors driving the industry’s success have been AI integration and better methods of monetization.

Monetization is an extremely important consideration given that the final production and development cost of GTA 6 is likely to fall between $1 billion and $2 billion. This year’s performance leader in the space is the Amplify Video Game Leaders ETF (GAMR C), up 39% YTD, followed by the Global X Video Games & Esports ETF (HERO B+), up 38%, and the VanEck Video Gaming and eSports ETF (ESPO B-), up 37%.

Another surprising theme in the rearview mirror this year was the rebound in performance for electric vehicle ETFs. In the U.S., there has been an upward surge in EV sales, as buyers try benefit from expiring incentives, creating a pull forward effect. Globally, EV sales are on a record pace, up 21% YOY, driven by 50% market adoption in China. Two ETFs that have benefited from the EV trend have been the KraneShares Electric Vehicles and Future Mobility Index ETF (KARS B) and the Amplify Lithium & Battery Technology ETF (BATT ), up 28% and 26%, respectively. Both funds are handily beating their larger ETF competitors in the category (KARS vs. DRIV and BATT vs. LIT) on a YTD performance basis as well.

VettaFi LLC (“VettaFi”) is the index provider for UFO, GAMR, and BATT, for which it receives an index licensing fee. However, UFO, GAMR, and BATT are not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of UFO, GAMR, and BATT.

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