Some thematic, niche-focused exchange-traded funds are big winners in 2017, significantly outpacing the broader tech sector that is driving the overall market.

The outperformance isn’t solely attributed to an equity bull market lifting all boats. The SPDR S&P 500 ETF (SPY) is up 9.37 percent year-to-date as of Friday, and the Technology Select Sector SPDR Fund (XLK) is up 16.29 percent. But several thematic ETFs, such as those from Ark Investment Management and Global X Funds, are sharply higher.

The ARK Innovation ETF (ARKK) is up 43.77 percent, while the ARK Web x.0 ETF (ARKW) and ARK Industrial Innovation ETF (ARKQ) are up 40.39 percent and 30.99 percent, respectively.

The Global X Social Media ETF (SOCL) is up 30.80 percent, while the Global X Robotics & Artificial Intelligence ETF (BOTZ) has gained 26.27 percent and the Global X FinTech ETF (FINX) is 25.22 percent in the black this year.

The strength is not limited to these two fund families. Among other thematic ETFs, the Amplify Online Retail ETF (IBUY) is up 24.10 percent, while the PureFunds Video Game Tech ETF (GAMR) and KraneShares CSI China Internet ETF (KWEB) are up 37.63 percent and 40.43 percent, respectively.

Thematic ETFs are one of the fastest-growing types of funds in the space as the industry seeks new investment ideas. Some of them are actively managed, such as from Ark, and they focus on extremely niche areas. The ARKK fund, for example, invests in “disruptive innovation” companies, while SOCL invests in social media companies and IBUY holds online retailers.

But the outperformance begs the question: are they just in the right place at the right time, or do funds that focus on seeming long-term trends have staying power as viable wealth-building vehicles?

Ben Johnson, director of global ETF and passive strategies research at Morningstar, remains unconvinced of their long-term viability.

“Generally speaking, what I’ll say is for every theme there will be a season. Particular themes happen to be very much in season right now,” he says.

Regarding the Ark funds in particular, Johnson says they’ve been able to capitalize on the momentum in technology, and in the very near-term the funds have done very well.

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