ETFs & Funds
Home›ETFs & Funds›ETFs›Electrification infrastructure ETF targets utilities s…
Electrification infrastructure ETF targets utilities spending tied to AI demand
The ALPS Electrification Infrastructure ETF holds 35.7% in utilities, and its YTD gain of more than 22% outpaces a typical utilities benchmark by about 6 times.
Domestic for-profit utilities are increasing spending to keep up with the AI-driven demand cycle and to modernize power grids, according to Regulatory Research Associates. The firm estimates that U.S. utilities will spend $1.3 trillion from 2026 through 2030 to meet AI-related needs, improve reliability, and refresh transmission and generation infrastructure.
ETF Trends highlights the ALPS Electrification Infrastructure ETF (ELFY), which turned one year old in April and is not a dedicated utilities fund but allocates 35.67% of its portfolio to the sector. The article says ELFY is positioned as a complement to broad market funds with limited utilities exposure, emphasizing electrification infrastructure and utility stocks tied to the theme.
S&P Global Market Intelligence is cited for projections that data centers and other large industrial loads such as new manufacturing facilities will add 374 TWh of energy demand and more than 45 GW of peak load through 2035. The article also points to additional drivers, including infrastructure modernization for grid resiliency and the need to build out new generation and transmission capacity to connect to new resources.
ETF Trends notes ELFY’s industrial and energy exposure, with more than 45% in those areas, and says the fund is up more than 22% year-to-date. The outlet frames this as potential for outperformance versus standard utilities strategies, while also noting that VettaFi LLC is the index administrator and calculation agent for ELFY and receives a fee.