The US thematic ETF market is moving beyond broad artificial intelligence exposure towards increasingly specialised strategies as issuers target areas such as memory, power and photonics, according to xETFs.
The shift follows a quieter period for thematic funds after the Covid-era boom. xETFs chief investment officer Kenneth Wong (pictured) said interest began to recover around 2024 and 2025 as artificial intelligence brought investors back to the category. Broad AI funds helped restart demand, but the market is now moving towards more specific parts of the technology chain, Wong said. Recent launches have focused on areas including memory, power infrastructure and photonics as investors seek more