AI fever drives boom in thematic ETFs as managers seek growth

thematic ETFs: Thematic exchange-traded funds are investment vehicles designed to provide targeted exposure to specific trends, industries, or market narratives rather than broad benchmarks. In the reported development, fund managers are introducing increasingly specialized products centered on artificial intelligence, robotics, cybersecurity, defense, automation, and space themes as investor demand seeks the next major growth opportunity. Market trend: Artificial intelligence is currently the dominant theme in thematic ETF product development, with newer funds refining exposure toward niches such as AI laboratories, memory chips, robotics, and related infrastructure. Risk context: The renewed enthusiasm comes as investors question whether heavy corporate spending and borrowing on AI infrastructure will generate sufficient returns, creating volatility for AI-linked strategies. Investor demand: Thematic ETFs have regained investor interest, with artificial intelligence, energy transition, and security among the leading areas of demand.