Global X U.S. Electrification ETF (ZAP)

Feeds into the AI theme. Long-term projections show that electricity will definitely be a bottleneck. Assuming that data centres all stay on the ground (and not up in the sky), we'll have that bottleneck. Likes this ETF if you have a long time horizon. 

He's been looking at it, hasn't purchased yet.

His favourite ticker symbol of all :)  AI may live in the cloud, but it still runs on electricity. We have a super-cycle ahead of us in terms of the growth of electricity and the need to generate, transmit, and manage power in the digital economy. The first boom in decades in electricity -- driven by AI, reshoring, EVs, and electrification. 

US data centre electricity demand forecast to double from 31 GW in 2025 to 66 GW in 2027. (For context, 1 GW of capacity can power ~750k homes for about 1 year.) We're going to need a lot of electricity! The grid must be rebuilt and improved. 

Nice thing about this ETF is that it's not all AI. It includes names in infrastructure, industrials, and utilities. So the beta is low. MER is 0.50%. 

Great ticker :)  US names that are involved in the continuous improvement of grid and electrification. Data centres run 24/7, take an enormous amount of power and energy, and there are more coming. Performed well. 

Likes it here, RSI is ~48, right at 100-day MA. Not very volatile, so not many dips. Decent yield ~2%.

It covers the power side of AI. In the US, electricity demand is expected to grow 50% by 2040. This includes grid modernization and industrial power demands. Its composition is 3/4 utility names and 1/4 industrial names. The re-shoring of manufacturing in the US is good for it as well as EV adoption. The expense ratio is 50 basis points.

Basically owns big US utilities, with about 80% in electric. ETF hasn't been around even a year, launching in December 2024 or so. Utilities have done well on the flight to safety this year. But is market reverting to risk-on assets in tech, financials, or industrials? Yes, it really has in the last month, but will that continue? Yield is ~2%.

A safe space, and you'll make money. But he thinks we're mid-cycle with more room to run in the secular bull market for industrials, financials, and tech.

Is very new and small, but it covers a space that every investor should be in. There's strong demand for energy generation.