The video game industry has been in the spotlight recently, and for good reason. The gaming industry is massive and fast-growing, boosted by the pandemic-era lockdowns as consumers looked for indoor entertainment.

In the last two weeks, gaming giant Take-Two Interactive (TTWO  ) announced its $12.7 billion acquisition of mobile-game maker Zynga (ZNGA  ), Microsoft (MSFT  ) broke records with its $68.7 billion acquisition of industry leader Activision-Blizzard (ATVI  ), and Netflix CEO Reed Hastings said in an earnings call the streaming platform plans to "amaze our members by having the absolute best [games] in the category."

The big moves come as the industry continues to grow among consumers. According to the Entertainment Software Association, an industry trade group, nearly 227 million Americans play video games as of 2021, with two-thirds of adults and three-quarters of kids playing video games weekly. Moreover, over half of video game players surveyed said they played more games during the pandemic, and 90% think they'll continue playing after the country opens up and social distancing is no longer required.

Investors seeking to diversify their portfolio to benefit from this growing industry, with exposure to both domestic and global markets, can include these exchange-traded funds currently trading in the United States: VanEck Video Gaming and eSports ETF (ESPO  ), Global X Video Games & Esports ETF (HERO  ), Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD  ), and Wedbush ETFMG Video Game Tech ETF (GAMR  ).

Top holdings for these funds include Tencent Holdings (TCEHY  ), Nvidia (NVDA  ), Advanced Micro Devices (AMD  ), Activision-Blizzard, Take-Two Interactive, and Electronic Arts (EA  ).

The video game industry is mostly comprised of stocks in communication services and information technology sectors. Currently, the S&P 500 (SPY  ) has a 1-year trailing return of about 14%, while all three video game ETFs have underperformed the market with negative returns.