Bloomberg and J.P. Morgan Highlight Key ETF Themes for 2026
Bloomberg and J.P. Morgan have identified artificial intelligence infrastructure, defense, nuclear energy, and space as the leading themes for exchange-traded funds (ETFs) in 2026. This shift reflects a transition in the market from the initial excitement surrounding AI to a focus on the essential physical infrastructure that supports its growth, including power plants and data centers.
Thematic ETFs currently manage over $256 billion, with significant capital expenditures projected for AI-related sectors. J.P. Morgan anticipates that total AI-related capital expenditures will reach $5.5 trillion by 2030, an increase from previous estimates. For 2026, capital expenditures for hyperscalers are expected to be around $650 billion, with operating cash flow projected to exceed $900 billion by 2027.
Nuclear-focused funds have seen substantial gains, with some, like NUKZ, increasing by approximately 64% in 2025, largely due to the rising electricity demands of AI data centers. The reliability and low carbon emissions of nuclear power make it a critical component in meeting these energy needs. Meanwhile, the space sector is also emerging as a key player, benefiting from a dramatic reduction in launch costs, which have fallen by about 95% over the past 65 years, enhancing the viability of orbital infrastructure for AI applications.
Defense ETFs continue to attract investment as geopolitical tensions rise and military budgets increase, particularly among NATO countries and in the Indo-Pacific region. This trend is not solely driven by conflict risks; it also reflects a growing emphasis on supply-chain resilience in investment strategies. Jon Maier, an ETF strategist at J.P. Morgan, notes that the integration of traditional industries into the AI ecosystem is reshaping investment themes, highlighting the evolving landscape of the market.
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Source: KLEA News