A handful of niche exchange-traded funds posted double-digit gains this week, led by a fund tracking SAP SE that jumped 21.22% after the German software giant reported a sharply expanding cloud order backlog. The rally underscores how concentrated single-stock and thematic ETFs can swing hard on a single earnings catalyst, even as broader market sentiment stays mixed.
ADRH, which offers concentrated exposure to SAP through American Depositary Receipts, was the week's standout performer. The move followed SAP's disclosure of a cloud order backlog of €22.9 billion, up 27% year-over-year on a constant-currency basis. The company also reported cloud revenue growth of 22-24% and a 25% increase in revenue from its Cloud ERP Suite, figures that drove renewed investor appetite for the single-stock fund.
Cloud and Gaming Funds Round Out the Top Five
Behind ADRH, the WisdomTree Cloud Computing Fund (WCLD) rose 11.14%, benefiting from broader investor demand for software-as-a-service businesses and cloud infrastructure providers posting strong revenue growth. Gaming and esports exposure also had a strong week: the Roundhill Video Games ETF (NERD) gained 10.79% and the Global X Video Games & Esports ETF (HERO) added 10.68%, both lifted by strength across publishers, developers, and platform operators in the sector.
Rounding out the top five was the Alger Russell Innovation ETF (INVN), up 10.58% on the back of growth-oriented holdings spanning technology, healthcare, consumer, and digital payments companies.
A Note of Caution on Valuations
Despite the strength of the weekly gains, the report cautioned that investors chasing these funds now may want to pause and assess valuations rather than buy purely on momentum. After a week of double-digit moves across all five funds, entry points that looked attractive a week ago carry meaningfully more risk today, particularly for the single-stock and narrowly thematic products that led the rally.
