Following a 7% pullback earlier in June, the tech-heavy Nasdaq-100 has bounced back more than 5% as bullish investors demonstrate that they believe the artificial intelligence (AI) trade still has plenty of room to run. But with volatility remaining elevated, investors are finding it increasingly difficult to identify potential individual winners.
Defiance AI & Power Infrastructure ETF (AIPO) offers diversified exposure across the AI value chain, spanning energy, industrials, utilities, and IT sectors. AIPO is uniquely positioned to benefit from long-term growth in data center and power infrastructure development, benefiting from multiple market dynamics. I recommend AIPO with a Buy rating, citing robust demand signals, healthy backlogs, and a decades-long growth runway for supporting AI infrastructure.
AIPO and peers tap AI's hidden layer as surging data center power needs drive infrastructure ETFs to ride the electrification-fueled growth wave.
Defiance AI & Power Infrastructure ETF is a thematic ETF linked to power demand and AI data centers / infrastructure with an expense ratio of 0.69%. About 50% of the index weight is allocated to the Power generation & grid equipment segment. This distinguishes it from classic AI ETFs, such as AIQ, and brings it closer to solutions like GRID (in my opinion).
CNBC's Frank Holland speaks with about Sylvia Jablonski, CEO & CIO Defiance ETFs about the action in ETFs this week.