J.P. Morgan Says AI ETFs Reach Top 5 by Assets as Mutual Funds Post Negative Inflows
Updated
Updated · CNBC · Jul 23
J.P. Morgan Says AI ETFs Reach Top 5 by Assets as Mutual Funds Post Negative Inflows
3 articles · Updated · CNBC · Jul 23
Summary
J.P. Morgan Asset Management said AI-themed exchange-traded funds have climbed into the top five investment themes by assets under management, despite second-quarter volatility in the category.
Investor demand is spreading beyond software into the broader AI ecosystem, with the firm highlighting overlap between AI ETFs and infrastructure tied to applications, energy and model development.
The report also found money keeps shifting from mutual funds into ETFs, while overall mutual-fund inflows have turned negative over the past several years.
Tax treatment is helping drive that migration: ETFs typically avoid capital-gains distributions, unlike mutual funds that can generate taxable gains even after investors suffer 20% to 40% losses.