ETF fever and the flight from individual stocks: Is Wall Street inflating a bubble within a bubble?

Bank of America clients withdrew a record $14.8 billion from individual stocks in one week, while pouring $18.8 billion into tech ETFs. 2026 is shaping up to be a record year for thematic AI-focused ETF launches. Analysts warn of a 'bubble within a bubble'.

Bank of America clients withdrew a record $14.8 billion from individual stocks in a single week, while simultaneously pouring nearly $19 billion into tech ETFs. 2026 is shaping up to be a record year for thematic ETF launches focused on AI sub-sectors, with 73 new funds launched since the start of the year—an 87% jump from last year. Investment managers warn of a 'bubble within a bubble' forming, as investors abandon individual stocks for popular ETFs that may themselves be overvalued. The article cites analysts from CFRA Research, Morningstar, and BlackRock, who analyze the trend and caution that it is difficult to know whether investors are riding the wave or buying at the peak.