Capacitor shortages emerge as a new AI-themed ETF trade

AI investing is expanding beyond chips and cloud software into smaller parts of the supply chain, with capacitors becoming a new theme in exchangetraded funds. The article says the latest focus is on multilayer ceramic capacitors, or MLCCs, which help manage power and reduce noise in data centers and AI servers. New ETF launches from Defiance and Tema target companies tied to MLCC production and related powermanagement components, many of them in Asia. The story notes that firms such as Murata, TDK, Samsung ElectroMechanics and Kyocera dominate the market, while demand from AI hardware is increasing interest in the segment. Market strategists interviewed for the piece said these niche funds reflect a broader trend of investors slicing the AI trade into smaller subthemes. They also cautioned that investors should understand the holdings, fees and overlap with broader AI funds before adding them to portfolios.