JPMorgan Report: AI ETFs See Surge Despite Volatile Quarter
J.P. Morgan Asset Management's latest ETF guide indicates a significant rise in AI-themed exchange-traded funds, attracting substantial investment despite a turbulent second quarter.
Exchange-traded funds (ETFs) focused on artificial intelligence (AI) have become a top investment theme, drawing significant capital inflows according to J.P. Morgan Asset Management's recent "Guide to ETFs." This growth occurred even as the broader market experienced volatility in the second quarter.
The report positions AI-themed ETFs among the top five themes by assets under management. This surge in interest comes despite a challenging period for technology stocks, which saw considerable price swings and declines during the quarter ending June.
Jon Maier, chief ETF strategist at J.P. Morgan, noted that many investment themes are converging around AI and its surrounding ecosystem. He specifically highlighted the overlap between AI-themed ETFs and infrastructure investments, citing the growth driven by AI applications, energy consumption, and the AI models themselves.
The report also points to a wider trend of capital shifting from traditional mutual funds into ETFs. While AI-specific funds are growing, ETFs as a category are generally gaining traction, partly due to tax advantages for retail investors. Traditional mutual funds, conversely, have experienced net outflows for several years, according to the data.