U.S. electricity demand is climbing at a pace not seen since the post-World War II electrification era. However, according to one index architect — investors may be eyeing the wrong corner of the trade.
Participate in artificial intelligence (AI) investing long enough and you're apt to hear plenty about this disruptive technology's substantial power demands. Market participants know the anecdotes.
Between rising demand created by artificial intelligence data centers and the pressing need to shore up energy grids, market participants hear plenty about the electrification infrastructure investment thesis. It's one rooted in sound fundamentals and accessible via select ETFs, including the ALPS Electrification Infrastructure ETF (ELFY).
Designed to provide broad exposure to the Utilities/Infrastructure ETFs category of the market, the ALPS Electrification Infrastructure ETF (ELFY) is a smart beta exchange traded fund launched on 04/09/2025.
If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the ALPS Electrification Infrastructure ETF (ELFY), a passively managed exchange traded fund launched on April 9, 2025.
Infrastructure is getting a fresh look. Investors are questioning whether the classic 60/40 portfolio still holds up in an environment with inflation.
If this year has taught us anything, it is the importance of power — and knowing where it comes from. Since the U.S.-Israel-Iran war kicked off, chaos in the Middle East has driven energy prices and inflation higher and higher.
Thematic investing has returned to the spotlight, but investors are moving beyond direct AI plays to focus on electrification infrastructure needed to power data centers and artificial intelligence (AI) growth. Key Takeaways: ELFI provides broad electrification exposure through utilities, uranium, copper, and two other sectors with equal weighting.
Data center developers plan to reduce their reliance on utility grids by investing in onsite power for rapidly scaling facilities. The shift creates opportunities for electrification infrastructure providers as energy independence takes on new urgency.
ALPS Electrification Infrastructure ETF (ELFY) offers diversified exposure to electrification across utilities, industrials, and energy, but remains unproven after only 10 months. ELFY's equal-weighted, 100-stock structure provides discovery potential but limits concentrated upside; utilities currently dominate with 40% allocation. Valuation at 4.4x sales and 30x earnings is neither compelling nor cheap, with sub-5% ROI and mediocre sales growth for a growth-themed ETF.
During a recent interview, Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, explained why thematic ETFs and active fixed income are experiencing renewed interest as investors look beyond the Magnificent Seven's dominance.
The ALPS Electrification Infrastructure ETF (ELFY) is drawing investor attention as U.S. electricity demand heads for its fastest growth in decades, driven by artificial intelligence data centers, manufacturing reshoring, and expanding electric vehicle infrastructure. The fund has pulled in $79.9 million over the past six months and $37.