Asset managers launch new AI-focused ETFs to meet investor demand

Asset managers are launching new exchange-traded funds (ETFs) focused on artificial intelligence (AI) to meet growing investor interest. In 2024, over one-third of AI-themed ETFs have been introduced, with three new funds added recently, including a revamped cloud computing ETF. The total assets in AI ETFs have reached $4.5 billion, nearing the $5.5 billion in nuclear power-themed ETFs. Major firms like BlackRock have introduced actively managed funds to capture emerging AI opportunities, reflecting the rapid growth in the sector. Analysts report a significant increase in capital spending on AI by major tech companies, projected to reach $206 billion this year. Venture capital investments in AI startups are also rising, with an estimated $79.2 billion expected by year-end.