At this point, many advisors have come to agree that the key to navigating 2025’s uncertain market is to do so through a well-diversified portfolio.
There are plenty of reasons to consider building a diversified portfolio. Recent GDP data and jobs report numbers seem to indicate the U.S. economy may be slowing. Meanwhile, the path forward for both the Fed’s rate-cutting regimen and its long-term leadership remains uncertain.
As such, the value of diversification shouldn’t be expected to fade any time soon. However, the question remains: How does one go about constructing a properly diversified portfolio?
There are a few more traditional ways to build a diversified portfolio, such as increasing allocations to international equities or fixed income. However, advisors can go a step further by choosing to invest in an ETF with an outside-the-box approach. By picking up a more unusual strategy, investors can diversify away from traditional equity and fixed income funds while accessing new avenues for fostering long-term growth.
The number of ETFs listed in the U.S. are growing on a near-daily basis. So there are certainly plenty of fund strategies for investors to choose from. Better yet, there are quite a few outside-the-box funds that have been doing quite well recently.
Riding Momentum
One fund that has been performing well in both the near- and long-term is the VanEck Social Sentiment ETF (BUZZ). An alternative take on large-cap equity exposure, the fund focuses on U.S. companies receiving significant positive attention from investors.
This is done by tracking the Buzz NextGen AI US Sentiment Leaders Index. The index measures positive momentum for stocks by examining content from a variety of data sets, including social media, blog posts, and news articles.
On paper, this strategy doesn’t necessarily seem like it would be well-suited for the moment. After all, many retail investors are still making panic buys and sells based on near-term market movements and headlines. Would a fund that tracks an index based on investor momentum be the ideal choice to handle 2025’s uncertain U.S. market?
However, BUZZ’s results speak for themselves. As of July 31, 2025, the ETF's NAV has skyrocketed by more than 35% over the last three months. Long-term performance for the fund is promising, as well. Over the past year, BUZZ’s NAV has risen by 51.61%, as of July 31, 2025.
Opportunities in the Gaming Sector
BUZZ isn’t the only alternative fund that warrants a closer look, either. For instance, take a look under the hood of the Amplify Video Game Leaders ETF (GAMR).
A thematic play that focuses on the gaming sector, GAMR uses the VettaFi Video Game Leaders Index (VGAME). This index includes trusted names in the gaming industry, such as Nintendo, NetEase, and Microsoft.
GAMR can offer itself for a number of different use cases. The fund can operate as an alternative play on a consumer discretionary fund, capitalizing on retail spending in the gaming industry. One could also employ GAMR as a vehicle to benefit from growing tech momentum without being directly invested in the same stocks a generic tech ETF would have.
Either way, GAMR has already provided its investors with impressive results this year. As of July 31, 2025, the fund’s NAV has risen 35.35% year-to-date.
Hydrogen-Powered Gains
GAMR isn’t the only thematic ETF showing great promise this year. Another thematic ETF that may be worth keeping an eye on is the Global X Hydrogen ETF (HYDR).
As the fund title implies, HYDR invests in companies engaged in advancing the global hydrogen industry. Eligible companies can include those involved in production, hydrogen integration, developing hydrogen fuel cells, and more.
Due to its focus on hydrogen energy, HYDR can be in a good position to benefit in the long term from clean energy policies. Clean energy hasn’t reached the forefront of popularity right now. But HYDR still offers immense growth potential as demand mounts for net-zero emissions.
Furthermore, HYDR can help an advisor foster a more international portfolio. The fund holds significant exposures to international markets, such as South Korea, Britain, and Germany. This lets HYDR tap into clean energy momentum outside the United States, while fostering a more balanced stock selection in terms of country weight.
Attractive Momentum
Crucially, HYDR’s near-term results are showing attractive momentum. As of June 30, 2025, the fund’s NAV has risen 37.32% over the last six months.
All in all, advisors don’t need to just stick to the tried-and-true traditional core ETFs when looking for compelling sources of capital appreciation. If anything, the outstanding results of these funds showcase the importance of looking outside the box if you’re truly looking to outpace the market.
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out some of our webcasts.
VettaFi LLC (“VettaFi”) is the index provider for GAMR, for which it receives an index licensing fee. However, GAMR 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.
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