The race to cash in on AI’s explosive growth just got faster. Asset managers are rolling out AI-themed ETFs at breakneck speed, with over a third of such funds launching in 2024 alone, per Morningstar data. The trend? Everyone’s betting big on AI—even if no one knows which companies will win long-term.
From BlackRock’s new actively managed ETFs to Amplify’s rebranded cloud-computing fund, firms are pivoting hard to capture the AI hype. 'The AI market will change dramatically,' says Tony Kim of BlackRock, highlighting the scramble to stay ahead of emerging opportunities.
Why the frenzy? Look no further than Nvidia’s 200%+ stock surge in 12 months. But analysts warn: AI’s future winners could be broader—think cloud infrastructure, chipmakers, and even startups attracting $79B+ in VC funding this year.
While AI ETFs like Global X’s are up 20% YTD, they’re still trailing the S&P 500. Yet, investors keep piling in, drawn by FOMO and the promise of a tech revolution. As Bank of America puts it, an 'AI arms race' is heating up among giants like Microsoft and Amazon—with $206B in megacap spending this year alone.
Bottom line? AI ETFs are booming, but picking the right horse in this race? That’s still anyone’s guess.
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The trend? Everyone’s betting big on AI—even if no one knows which companies will win long-term.
'The AI market will change dramatically,' says Tony Kim of BlackRock, highlighting the scramble to stay ahead of emerging opportunities.
As Bank of America puts it, an 'AI arms race' is heating up among giants like Microsoft and Amazon—with $206B in megacap spending this year alone.
