Birds of a feather flock together. That adage also applies to the equities market, and so far this year, some of the biggest ETF inflow winners outside the broad-market giants have had something in common: AI exposure.
Those flows also illustrate how thematic enthusiasm can contribute to herding bias and portfolio overlap. In this case, investors have poured billions into funds tied to AI through very different corners of the market, including semiconductors and memory chips—and the hyperscaler spending on AI infrastructure that ties it all together.
