The Evolving Consumer theme captures the dynamic shifts in consumer behavior driven by technological advancements, demographic changes, and evolving societal values. This investment category focuses on companies poised to benefit from these long-term trends, targeting areas from the digital marketplace to modern living. Portfolios within this theme hold equities in innovative sectors such as e-commerce, digital media, home construction, and emerging lifestyle trends like legal cannabis and online gaming. For investors, this category offers a way to gain targeted exposure to high-growth potential areas that are reshaping the global economy and to capitalize on the changing ways people live, shop, and entertain themselves.
The diversity within the Evolving Consumer category is significant, with several distinct sub-groups catering to specific trends. The largest sub-group, Internet & E-Commerce, represents approximately 49% of the category’s assets under management (AUM) and includes well-known ETFs like the First Trust Dow Jones Internet Index Fund (FDN). The second major pillar is Housing & Construction, making up about 31% of the category’s AUM with funds such as the iShares U.S. Home Construction ETF (ITB). Other notable sub-groups include Cannabis & Vice (~6.6% market share), which features funds like the AdvisorShares Pure US Cannabis ETF (MSOS), and Digital Media & Entertainment (~6.1% market share), which provides exposure to the rapidly growing gaming and streaming industries through ETFs like the VanEck Video Gaming and eSports ETF (ESPO).
Performance & Flows Update (as of 9/9/2025)
The Evolving Consumer category has demonstrated strong performance year-to-date (YTD), posting an aggregate return of 23.22%. Investor sentiment has been positive overall this year, with the category attracting net inflows of $589 million YTD. However, a slight reversal has been observed more recently, with net outflows totaling $107 million over the past month.
A closer look at the sub-groups reveals significant performance divergence. The top-performing segment has been Digital Media & Entertainment, which has surged with a YTD return of 36.78%. In contrast, the Internet & E-commerce sub-group, despite being the largest, has seen significant outflows of $268 million YTD. The strongest investor conviction appears to be in Housing & Construction and Cannabis & Vice, which have attracted the largest YTD inflows of $291 million and $271 million, respectively, highlighting investor interest in these specific market segments.
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Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
