ETFs gone wild

The New York Times’ Connections game is famous for its absurd and random categories, like “Things that could be a Wi-Fi password or an Elon Musk baby name.” Top contender for next outrageous category? ETFs.

ETFs are venturing into weirder and wilder territory these days. Just look at the UFO Disclosure ETF, which turns UFO speculation into an investment strategy. The fund bets that if governments ever confirm or release advanced technology linked to UFOs that’s currently hidden from the public, the companies helping develop or commercialize those breakthroughs could see massive upsides.

Despite the out-of-this-world pitch, the fund has garnered just $2 million in assets, and it charges a steep 0.99% annual fee—well above the average expense ratio of 0.48% for index ETFs in 2025.

Then there’s the Bitcoin and Treasuries AfterDark ETF. For a 0.97% annual fee, the fund holds bitcoin—but only outside regular stock market hours, rotating into Treasuries or cash during the trading day, then re-buying the crypto king after the market closes. Strange as it sounds, there may actually be something to it: Investors who held bitcoin continuously since January 2024 would have earned returns of 65.2%, but those holding it only overnight would have seen gains climb to 213.8%, according to the Wall Street Journal.

Putting the fun in funds

Not every niche ETF is a gimmick. Many are centered around very real themes—particularly the massive buildout happening across AI infrastructure.

The Roundhill Memory ETF, better known by its ticker DRAM, has been gaining serious traction lately. Much of the appeal comes from its concentrated exposure to the memory-chip makers benefiting most from the AI boom: roughly 75% of the portfolio is allocated to Micron, SK Hynix, and Samsung. For US investors, that exposure is especially attractive because the latter two are difficult to invest in directly without buying broader Korea-focused funds. As a result, investors were quick to pile into the fund following its April 2 launch, helping it pull in roughly $1 billion within its first 10 trading days.

What investors should watch for

The ETF industry is rapidly changing. What was once viewed as a simple, low-cost, diversified way to invest is increasingly turning into a playground for speculative trades and concentrated bets. In fact, more than a quarter of this year’s ETF launches now depend heavily on the performance of a single asset, according to the WSJ. In the case of the Roundhill Memory ETF, just seven companies make up nearly the entire portfolio.

So while the latest ETF craze may promise everything from alien tech to overnight bitcoin alpha, investors should probably do a little digging before yolo-ing into the next shiny ticker.—SY