JPMorgan’s new 'Guide to ETFs'

Summary

JPMorgan's quarterly ETF guide highlights the surge in AI-driven thematic ETFs, with infrastructure, energy, and materials all feeding into the AI story. Jon Maier explains that many thematic trends are converging toward AI, and the report shows a sharp decline in mutual fund flows as investors increasingly favor ETFs for tax efficiency and liquidity.

• AI-themed ETF assets have skyrocketed since 2018, with infrastructure, energy, and materials riding the AI wave.
• Jon Maier sees many thematic trends morphing toward AI, creating a sustained ecosystem.
• Infrastructure ETFs have performed well for years and feed into the AI story.
• Energy and materials are also key components of the AI value chain.
• Mutual fund flows have been consistently negative since 2020, while ETF adoption grows.
• Tax efficiency and liquidity are major advantages of ETFs over mutual funds.
• The shift from mutual funds to ETFs is expected to continue.