The AI Hype Isn’t Saving AI ETFs from Bleeding Money

AI is the buzzword of the year, but AI-focused exchange-traded funds (ETFs) are struggling to keep up with the hype. Despite the widespread excitement, many of these thematic funds are losing money, highlighting a broader issue with niche ETFs. While AI seems like a surefire bet, these funds have been underwhelming, proving that just because something is trending doesn’t mean it’s a guaranteed win. The AI fund fiasco serves as a warning for investors chasing the latest themes—be it Californian carbon permits, Chinese cloud computing, or pet care. Timing is tricky, and holding onto these investments long-term is even harder. In the volatile world of thematic ETFs, what’s hot today might leave your portfolio in the cold tomorrow.