The ETF landscape might be hitting an inflection point. For months, anything tagged with "AI" has been pulling massive inflows—regardless of fundamentals. But lately? There's a noticeable shift brewing.

Quality-focused funds are quietly gaining traction. Investors seem to be asking tougher questions: What's the actual earnings power? Where's the moat? Is this growth sustainable, or just narrative-driven momentum?

It's not that AI enthusiasm is dead. Far from it. But the market's getting pickier. The indiscriminate rush into AI-labeled ETFs is cooling off, while strategies emphasizing strong balance sheets, consistent profitability, and competitive positioning are finding their footing.

Maybe we're finally moving past the "buy everything AI" phase. If quality starts consistently outperforming hype-driven plays, that's a signal worth watching—especially for those building long-term positions rather than chasing headlines.