Investors Shift to Dividend ETFs After $24.1 Billion Q1 Inflows as AI Payoff Doubts Rise
Updated
Updated · The Globe and Mail · Sep 1
Investors Shift to Dividend ETFs After $24.1 Billion Q1 Inflows as AI Payoff Doubts Rise
3 articles · Updated · The Globe and Mail · Sep 1
Summary
$24.1 billion flowed into dividend funds in the first quarter, signaling a soft rotation away from pure tech momentum rather than a broad exit from AI.
Investor caution is building around when AI spending will translate into shareholder returns, especially as chip and platform leaders face heavy data-center capital expenditures that can squeeze free cash flow.
SCHD, Schwab's U.S. Dividend Equity ETF, is drawing attention because it combines dividend income with diversification across 101 holdings, offering a steadier alternative to concentrated AI bets.
Sticky inflation and firm interest rates could keep that preference in place through the rest of 2026, reinforcing demand for value and income-oriented strategies.