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The gaming industry has been growing exponentially in the U.S., with a roughly 12% compound annual growth expected between now and 2023, according to Grandview Research.

An excellent way to tap into this growing industry is through an exchange-traded fund, or ETF, which focuses specifically on gaming stocks. ETFs allow investors to invest in multiple stocks within the industry, providing both broad exposure to great stocks and diversification to reduce risk.

The number of ETFs that cover the industry has grown in recent years, mirroring the growth of the industry. Here are the top three performers right now.

1. Global X Video Games and Esports ETF

The Global X Video Games and Esports ETF (Nasdaq: HERO) invest s in companies that develop or publish video games, stream and distribute video gaming or esports content, are involved in esports leagues, or produce hardware used in video games and esports. This ETF tracks the Solactive Video Games & Esports Index.

It holds about 45 stocks from around the world, as the global name suggests. Roughly 39% are from Japan, 22% from the U.S., 13% from China, and 11% from South Korea.

It’s three largest holdings are Konami Group (OTC: KNAMF) from Japan, which makes up 7.6% of the fund; Roblox (NYSE:RBLX), which makes up 7.1%; and Nintendo (OTC:NTDOY), which accounts for 6.5% of the portfolio.

This ETF is crushing the markets, up 32% YTD and 48% over the past 12 months. It has a three-year annualized return of 14.2% and a five-year annualized return of 7.3%. It has an expense ratio of 0.50%.

2. Roundhill Video Games ETF

The Roundhill Video Games ETF (Nasdaq: NERD) tracks the Nasdaq CTA Global Video Games Software Index. The fund invests in companies that are developers or publishers in the global video games industry, as classified by the Consumer Technology Association (CTA).

This ETF holds roughly 41 stocks and is also global, with companies from Japan accounting for 38% of the ETF, followed by U.S. companies at 32% and South Korea at 14%. Further, 57% are large caps, with 16% midcaps and 27% small caps.

The top three holdings are Nintendo representing 11.9%, AppLovin (Nasdaq: APP) making up 11.8%, and Roblox accounting for 7.6%.

This ETF has returned 28% YTD and 62% over the past 12 months – crushing the S&P 500 over both time periods. It has a three-year annualized return of 14.7% and a five-year annualized return of 5.1%. It also has an expense ratio of 0.50%.

3. VanEck Video Gaming and eSports ETF

The VanEck Video Gaming and eSports ETF (Nasdaq: ESPO) tracks a slightly different index, the MVIS Global Video Gaming and eSports Index. This index consists of companies involved in video game development, eSports, and related hardware and software.

This ETF has fewer holdings, about 30, but it is also global. About 38% of the companies are from the U.S. followed by 28% from Japan and 17% from China.

The top three holdings are similar to the others, with AppLovin making up 9.1% of the portfolio, Roblox accounting for 8.9% of the fund, and Nintendo representing 7.1% of the ETF.

The VanEck Video Gaming and eSports ETF has returned a robust 25% YTD and 59% over the past year. It has a three-year annualized return of 30.4% and a five-year annualized return of 16%. It also has an expense ratio of 0.56%.

Of the three, the VanEck fund has a slightly higher expense ratio, but at the same time, it has superior longer-term returns compared to the others. All of these funds are similar, but the VanEck ETF, based on its longer-term track record, stands out as the best of the three.

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