JPMorgan: AI-Themed ETFs See Sharp Inflows Despite Rough Quarter

3-line summary

• A JPMorgan Asset Management report finds sharp inflows into AI-exposure ETFs.
• Inflows rose even during a quarter when the underlying names had rough results.
• Wall Street is increasingly using ETFs, not single stocks, to get AI exposure.

Desk Analysis

The interesting part is that flows and fundamentals aren't pointing the same direction — conviction in individual companies' results weakened, but bets on the 'AI theme' itself didn't shrink. Read alongside the Big Tech selloff story above, it looks like the market is starting to price single-stock risk and theme risk as two separate things.

Takeaway

Weak single-name results coexisting with theme-level inflows suggests the market is starting to price stock risk and theme risk separately.

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