ALPS Electrification Infrastructure ETF

ELFY

Market cap $84.5M

Rapid advancements by artificial intelligence (AI) and soaring demand for that technology are creating a host of infrastructure demands. With that comes a set of new, potentially compelling investment opportunities.

AI investing may be one of the top market narratives this year, but under the hood may be a theme that's just as exciting: electrification. All of those data centers helping ChatGPT and other AI software revolutionize the economy require huge amounts of electricity.

2025 is poised to be another year in which ETF launches break records or come close to doing so. So  advisors and investors have an understandably difficult time in assessing which rookie funds have long-term staying power.

When it comes to thematic investing, there are no right or wrong ways to access a theme. There are, however, trade-offs that come with the type of strategy or investment approach selected.

Investors are always on the hunt for the next disruptive theme or megatrend. AI has delivered the goods on that front.

If AI is the defining megatrend of markets right now, electrification is the engine driving it forward. Data centers are showing huge demand for electricity, but they aren't alone; numerous key segments are creating a massive need for electricity.

On this week's episode of ETF Prime, Todd Rosenbluth, head of research at TMX Vetta-Fi, joins host Nate Geraci to discuss how ETF share‑class expansions are getting more attention in 2025. Later, Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, weighed in on the promise and pitfalls of ETF share-class expansion.

The theme of artificial intelligence (AI) will continue to captivate investors. Without electricity, however, the lights could easily turn off on that investing idea.

The ALPS Electrification Infrastructure ETF (ELFY) rose 4.77% in June, driven by record extreme heat, rising electricity consumption from artificial intelligence data centers, and renewed focus on U.S. grid modernization. Industrials Led ELFY's Sector Performance Backup power manufacturer Generac (GNRC) rallied 17.26%, as power outages from extreme weather underscored demand for reliable energy sources.

The ALPS Electrification Infrastructure ETF (ELFY) delivered strong performance in May, returning 8.91%. The newest addition to the SS&C ALPS Advisors lineup offers targeted exposure to companies benefiting from the rising demand of electricity.