Warning: Speciality/Themed ETFs/funds do not exist to generate positive returns for investors

To clarify, this post is not about broad market ETFs or one's focused on indices like the S&P 500 or the Dow. With that out of the way...

I see posts every now and then on here and some other investment subreddits that ask how one can invest in so-and-so industry, country, trend, or even lifestyle like veganism. Or asking which of those trends to invest in. Well if your goal is to make money, stay away from those products. They exist purely to grow assets under management and extract fees for their fund managers, not to generate outsized returns (or even positive returns at all). They exist because retail investors love to 'invest' in ideas rather than do the work to research into companies and find opportunities themselves.

If you're into gaming and decide you want to 'invest' in a gaming etf to support the industry, then don't. Companies don't get capital this way, unless they're actively issuing shares into the market and the etf is adding liquidity, which is rare. But even the concept of supporting an idea or hobby by investing is entirely illogical. You can certainly support a business by buying their products, which may incentivize them to keep selling it. But investing is purely a money making exercise. It is not a donation by any means.

Now, if you want to make money by investing in a theme, you need an actual plan or thesis for which buying companies which fit that criteria will lead to profits. Even if something like EVs take off as a business category, if the companies barely make profits or most go under, there's no guarantee you'll profit from the trend. If you have no idea how to properly analyze companies or investment theses, stick to index funds like VTI. But remember, speciality or industry etfs will still be a success for the fund manager if they get a lot of interest, even if the companies they buy all do horribly.

Key takeaway: investment should be to make money, not to support ideas or hobbies. If you would be sad losing money solely to 'support' an industry, don't invest in it. Look for the money-making opportunities first, and then filter by your interests, not the other way around.