The weather has warmed up and schools are about to let out in the Northeast. That means more time for fun for teenagers like my 15-year old son, who enjoys listening to music and playing video games. These recreational activities have also been the backbone of a strong-performing ETF investment in 2025.
Many advisors and investors turn to thematic ETFs to complement their low-cost core equity exposure. These satellite ETFs can provide targeted exposure to a long-term trend not fully captured within the S&P 500, the MSCI EAFE, or similar indexes. However, these ETFs also come with risks as themes may not unfold as expected or can fall out of favor with investors. The industry tends to focus on artificial intelligence, healthcare technology, renewable energy, and robotics. Yet there are other themes worth consideration via ETFs.
Music to ETF Investors’ Ears
The MUSQ Global Music Industry ETF (MUSQ) launched in the summer of 2023. The fund remains small in size, with $25 million in assets. It was up 17% YTD through June 6, easily outperforming the iShares MSCI ACWI ETF (ACWI) by over 1,000 basis points.
MUSQ owns publicly traded companies with core interests across various facets of the music industry. These include music streaming, content creation and distribution, live events and ticketing, satellite and broadcast radio, and music equipment and technology. Holdings include some obvious positions like Live Nation Entertainment, Spotify, and Universal Music Group.
The ETF also holds more diversified mega-cap companies like Apple and Alphabet, whose services heavily influence music consumption. Sony, Tencent Holdings, and Yamaha provide additional global diversification. The ETF is relatively concentrated, with 27 positions. This allows investors a targeted thematic approach.
Level-Up Your Portfolio With a Thematic ETF
Meanwhile, the Amplify Video Game Leaders ETF (GAMR) offers exposure to the global video gaming industry. GAMR has been around since 2016 and has $40 million in assets. The thematic ETF was up 22% this far in 2025 through early June. That proves why ignoring smaller-sized ETFs is not necessarily a good decision.
The video game industry is expected to generate revenues of $691 billion in 2029. That’s up from a projected $522 billion this year. GAMR provides a diversified approach regarding exposure to the gaming ecosystem across 22 positions.
Game development and publishing was recently the largest segment. But development platforms, gaming GPUs, and mobile games companies were well-represented. Advanced Micro Devices, AppLovin Corp, Microsoft, Nvidia, and Sony Group were among the index fund’s largest positions. Just over half of the fund assets are invested in the U.S., with some companies from China, Japan, and Singapore also found inside.
VettaFi LLC (“VettaFi”) is the index provider for GAMR and MUSQ, for which it receives an index licensing fee. However, GAMR and MUSQ 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 GAMR and MUSQ.
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