ETF Edge on the roadmap for ETF innovation and recapping the first half of 2026

Summary

CNBC's ETF Edge discusses the record-setting first half of 2026 for ETF flows and innovation, including the rise of thematic products like the Roundhill DRAM ETF. The conversation covers the balance between innovation and regulation, the risks of excessive leverage and derivatives in ETFs, and the outlook for thematic investing in the second half. Alex Morris (F/M Investments) emphasizes the need for investor education and regulatory safeguards, while Mike Akins (ETF Action) signals that AI, infrastructure, and reshoring themes will remain key, even as AI flows may cool due to valuations.

• ETF inflows in H1 2026 are on a record pace, surpassing last year's record.
• Technology-focused ETFs saw stellar returns and inflows, while crypto and precious metals ETFs suffered.
• The SEC's 6C11 rule has allowed faster ETF innovation, with new products reaching market in about 75 days.
• A debate exists on whether leverage and derivatives inside ETFs have gone too far, with regulators viewed as needing to enforce limits.
• The Roundhill DRAM ETF is highlighted as a practical use of the ETF wrapper to access overseas pure-play memory stocks.
• For H2 2026, AI-themed ETFs are expected to maintain momentum, though high valuations may slow inflows.
• Infrastructure- and reshoring-themed ETFs are seen as gaining attention as the market broadens.
• Single-stock levered ETFs, especially modeled after Korean products, are flagged as a potential future risk.