Niche ETFs are a part of the concept of thematic ETFs. While they are similar in many ways to thematic ETFs, niched ETFs also have significant differences. A niche ETF generally targets a narrower focus than a broad-based sector or general theme-based ETF.
Beyond exposure to the general theme, each niche ETF offers access to many targeted levels of market exposure. This includes capitalization ranges, the type of asset, industries, sectors and geographic locations.