Ned Davis Research's Top 4 Stock-Investing Themes for ETFs: Millennial Spending, Bitcoin, Video Games, and Sports Betting

Ned Davis Research recommends four investment themes: millennial spending, video games, sports betting, and bitcoin. The firm's ETF recommendations include iShares US Consumer Focused ETF (IEDI) for millennial spending, Bitcoin (BTC) and iShares Bitcoin Trust (IBIT) for bitcoin, and Global X Video Games & Esports ETF (HERO) for video games. The themes have beaten the market in the past month, but most of the 47 themes tracked by the firm have beaten the S&P 500 over the period.

Ned Davis Research (NDR) has identified four investment themes that have shown strong performance and are expected to continue their upward trajectory. These themes include millennial spending, video games, sports betting, and bitcoin. NDR's ETF recommendations for these themes are iShares US Consumer Focused ETF (IEDI) for millennial spending, Bitcoin (BTC) and iShares Bitcoin Trust (IBIT) for bitcoin, and Global X Video Games & Esports ETF (HERO) for video games.

Millennial spending has been a significant driver of economic growth, with retail numbers and personal care spending rising in recent months. The iShares US Consumer Focused ETF (IEDI) has outperformed the S&P 500 by more than a percentage point in August, despite lingering concerns about consumer spending. The ETF's performance can be attributed to strong earnings from major retailers like Lowe's and Home Depot, and the resilience of US consumers despite tariff worries [1].

The video game sector has also been a standout performer, with the Global X Video Games & Esports ETF (HERO) leading the way. The ETF was one of the best-performing investment recommendations by NDR in August, with a year-to-date performance of +37.69%. The post-pandemic bottom for the video game group is expected to be in, with new game releases in 2025 and cost-cutting measures set to improve firms' profits [1].

Sports betting has been another winning theme, with the Roundhill Sports Betting & iGaming ETF (BETZ) outperforming the S&P 500 in August. The ETF's performance can be attributed to strong growth in users and sportsbook-friendly outcomes among sports betting companies. Large firms like DraftKings and Flutter have also posted strong earnings, contributing to the ETF's outperformance [1].

Bitcoin remains a long-term bullish trade, according to NDR. Despite a poor August performance, the cryptocurrency is expected to continue its upward trend. The firm has issued a price target of $121,000, implying a 10% upside from its current levels. The long-term outlook for bitcoin remains positive, with the crypto breaking past the $73,000 level in November [1].

While these four themes have beaten the market in the past month, most of the 47 themes tracked by NDR have beaten the S&P 500 over the period. NDR's strategic recommendations provide investors with a diverse range of options to consider in their portfolios.

References:
[1] https://www.businessinsider.com/stock-market-etfs-to-buy-how-to-invest-investing-themes-2025-9