- USA Infrastructure ETFs led inflows this month with a substantial $146 million MTD, highlighting strong investor interest in domestic infrastructure. Infrastructure stocks tend to perform well in election years and are bolstered further by Trump’s plans to build and reindustrialise America, which bodes well for sustained growth in this sector.
- Smart Cities Infrastructure ETFs recorded $55 million MTD in inflows, underscoring investor enthusiasm for urban development enhanced by AI-driven technology. This sector is booming as AI integration within infrastructure opens new growth avenues, helping cities become more efficient and adaptive.
- New Energy ETFs attracted $53 million MTD, demonstrating resilience within the renewable energy space. Despite Trump’s re-election, strong energy transition tailwinds continue to support growth in this sector, aligning with our perspective that political shifts may cause only a minor hiccup rather than a slowdown in new energy adoption, including nuclear.
- Digitalisation ETFs saw the largest outflows, totaling -$130 million MTD. Investor appetite appears to be waning for digitalisation-heavy themes dominated by the same “Magnificent 7” tech stocks, as investors seek broader diversification.
- Robotics & Automation ETFs recorded outflows of -$98 million MTD. This may suggest that investors are adopting a more targeted approach to Artificial Intelligence, favoring direct AI-focused funds while reducing exposure to broader, tangential areas like industrial automation funds that at this point feel rather prehistoric.
- Clean Energy ETFs registered outflows of -$72 million MTD. As a narrower sleeve than New Energy, Clean Energy may reflect more specific investor sentiment around renewables, with some positioning cautiously ahead of the election.
- Artificial Intelligence ETFs have led YTD inflows with a remarkable $1.47 billion. AI continues to capture investor attention as a transformative force, with significant advancements and applications across sectors reinforcing confidence in this theme.
- Smart Grid ETFs have recorded inflows of $325 million, underscoring the demand for infrastructure that supports energy efficiency and modernised power. As digital infrastructure expands, smart grids will be paramount for managing energy effectively.
- Uranium ETFs have accumulated $142 million YTD, reflecting a growing interest in nuclear energy within the broader energy transition. Investors see nuclear as a reliable and scalable energy source in decarbonising the energy mix.
- Robotics & Automation ETFs have experienced the largest outflows, totaling -$897 million YTD. As investors focus more narrowly on AI, interest in broader areas like pure play industrial automation may be waning amid shifting thematic preferences.
- Electric Vehicles and Battery Tech ETFs have registered outflows of -$667 million YTD, likely reflecting cautious positioning leading up to the U.S. election.
- Clean Energy ETFs have recorded outflows of -$665 million YTD. This narrower focus within the energy transition theme appears to have seen cautious positioning, especially ahead of the U.S. election and potential regulatory change.
