world-economy

JPMorgan: AI ETFs Surge Despite Market Volatility as Investors Shift to ETFs Over Mutual Funds

Exchange-traded funds capturing investor capital as traditional mutual funds face sustained outflows, according to JPMorgan's latest "Guide to ETFs." AI-themed ETFs rank among the top five investment themes by assets under management. This reflects structural advantages driving retail investor preference. Jon Maier, JPMorgan's chief ETF strategist, noted that "many themes are morphing towards AI and the ecosystem surrounding AI." ETF investors benefit from favorable tax treatment. They typically avoid capital gains distributions that burden mutual fund holders. JPMorgan's research shows mutual fund inflows have declined meaningfully over recent years. Maier expects this trend to continue. The firm also identified overlapping relationships between AI-themed ETFs and infrastructure. Despite volatility in the second quarter, investor appetite for ETFs remains strong.