From Yahoo Finance: 2025-06-13 19:15:00

Global assets in artificial intelligence and big data funds have surged more than sevenfold in the past five years, reaching $38.1 billion by the end of the first quarter of 2025, with AI ETFs dominating the U.S. market, according to a Morningstar Direct report. The surge reflects investor interest in AI technologies, sparked by breakthroughs like the late-2022 launch of ChatGPT 3.5. AI investing in the U.S. is largely through ETFs, with assets growing 14-fold in two years to $5.5 billion. The largest U.S. AI fund is the Global X Artificial Intelligence & Technology ETF (AIQ), benefiting from first-mover status. ETFs offer lower cost, transparency, and trading flexibility compared to actively managed funds. The dominance of the so-called Magnificent Seven technology stocks in AI ETF holdings poses challenges for fund managers, with nearly all frequently held AI stocks being U.S.-listed, highlighting American leadership in the sector.



Read more at Yahoo Finance: AI Fund Assets Reach $38B on Record Chinese Inflows