AI remains a powerful investment cycle, but capital is becoming more expensive. Financials, Industrials and infrastructure suppliers increasingly sit at its center, while leveraged Technology, Utilities and Real Estate face a higher hurdle as financing costs begin testing project economics.
Narrations of a Sector ETF Operator: When Capital Becomes the AI Bottleneck Read More »
Thematic ETF flows show investors buying hard AI infrastructure, dividend quality and geopolitical hedges while cutting software, generic AI, travel and housing. The biggest rotation is not out of AI, but away from narratives toward chips, power and cash flow.
AI power demand is shifting leadership beyond chips toward Industrials, Utilities, Materials and Financials. Sticky inflation and a divided Fed keep rate relief uncertain, so investors should favor profitable AI infrastructure, grid buildout and cash-flow quality over broad beta exposure.
With risk appetite firming at the end of June, we’re near market weight utilities to hedge against a more hawkish Fed.
ETFSector.com July Outlook: Utilities Read More »
Stay updated with the latests analysis and insights from etfsector.com