Top Themes for 2026: AI, Defense, and Infrastructure

In this episode of ETF Spotlight, I speak with Jay Jacobs, CFA, Head of U.S. Equity ETFs at BlackRock, about the best thematic investing ideas for 2026.

Artificial intelligence has been the dominant force driving markets for three years now. Lately, though, the narrative seems to be shifting toward the “AI scare trade.”

According to BlackRock, “we have yet to scratch the surface on much of AI’s potential, especially at the intersection of compute and conflict.” As AI moves into its next growth phase, how should investors be thinking about positioning?

Amid the AI boom, many worry we’re heading into a bubble, but historical comparisons suggest otherwise. AI investment remains moderate in context, and the sector’s strong stock performance has been driven by real earnings growth.

Investors can access the full AI value chain via the iShares Future AI & Tech ETF ARTY or the actively managed iShares A.I. Innovation and Tech Active ETF BAI. NVIDIA NVDA and Taiwan Semiconductor TSM are the top holdings in these ETFs.

Bitcoin is down about 50% from its record high near $127,000 last October, which has obviously been unsettling for crypto investors. While the iShares Bitcoin Trust IBIT ETF, which was the fastest-growing ETF in history, has seen assets decline this year along with other crypto ETFs, investors are not rushing for the exits.

What are the key takeaways from ETF flow data?

Jay is also bullish on defense and infrastructure themes. We also discuss the role of thematic ETFs in a portfolio.

Tune in to the podcast to learn more.

Be sure to look out for the next edition of ETF Spotlight, and remember to subscribe!

If you have any comments or questions, please email podcast@zacks.com

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This article originally published on Zacks Investment Research (zacks.com).

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