JPMorgan: AI-themed ETFs surge in number despite rough quarter for the sector

A new JPMorgan Asset Management report has documented a dramatic increase in the launch of AI-themed exchange-traded funds on Wall Street, with asset managers pressing ahead despite a rough quarter for many AI-related stocks. Researchers note that the pipeline of new AI ETFs is expanding faster than actual corporate earnings growth among the underlying companies. Market participants worry that an oversupply of similar products will make it harder for investors to identify quality funds while competition for the same underlying stocks could dilute returns. At the same time, the report acknowledges that sustained retail and institutional demand for AI exposure remains robust. The dynamic echoes past waves of thematic investing — the dot-com era and the ESG boom — and calls for careful product selection by investors.