XLG is trading 1.9% down today following a warning from the Bank for International Settlements (BIS) regarding the sustainability of debt-funded artificial intelligence expenditures.
- The BIS cautioned that over $1 trillion in debt-funded AI spending by hyperscalers could lead to an investment bust, raising systemic risk across the financial sector.
- The report has prompted widespread profit-taking in highly valued tech leaders after a sharp rally on June 29, 2026.
- The information technology slice of the ETF is facing the most significant pressure as investors reassess the long-term viability of massive capital outlays in the AI space.