2025 could become a historic period for investment strategies focused on artificial intelligence (AI). Thanks to the leadership of this groundbreaking technology, this year could be “defining” for thematic investing, according to The ETF Impact Report 2025–2026, published by State Street Investment Management.
In 2023, AI ETFs made a strong entrance into the market, as excitement around generative AI reached its peak, and in 2024, investors sought exposure to the companies driving the next era of AI innovation. Now, in 2025, AI is rapidly being integrated across industries, revealing new applications and efficiencies almost daily, according to the asset manager’s report.
In the first two months of this year, thematic ETFs recorded net inflows of $2.4 billion—the highest two-month intake since 2021. Exchange-traded funds focused on robotics and AI dominated that market: nearly 50% ($1.1 billion) of that flow originated from robotics and AI ETFs, which easily outperformed other popular themes, State Street noted.
This same week, Julian Emanuel, Senior Managing Director at Evercore and Chief Equity and Quantitative Strategist, said in a note to clients that thanks to the momentum of AI, the U.S. S&P index could rise 20% by the end of 2026, as this technology “will elevate stock valuations and social standards to unprecedented levels.”
As capital flows into high-growth, innovation-driven sectors, other thematic ETFs—such as those focused on Future Security and Enhanced Connectivity & Exponential Processing Power—should also benefit. With AI at the helm, 2025 could become a defining year for thematic investing, the asset manager added, noting that it expects “more such products to be launched in the near future, as the underlying technology continues to iterate and improve.”
The global ETF market could close out 2025 as its best year to date. According to projections from State Street IM, global ETF flows will reach $2 trillion (in U.S. terms) by the end of this year.
