ALPS Electrification Infrastructure ETF

ELFY

Market cap $203M

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.

Markets have treated AI as a gold rush of LLMs, chips and cloud applications, but as the industry shifts from chatbots to agentic systems —  AI that autonomously runs workflows and makes decisions — hyperscalers are now facing a brutal physical bottleneck.

The electrification of the U.S. economy is straining power grid infrastructure from multiple directions. State renewable mandates, fossil fuel plant retirements, manufacturing reshoring, and AI data centers are all bearing down on a system struggling to keep up.

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.

Semiconductors and software have largely overshadowed the electrification ETF trade. Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, says most investors are missing the sectors that actually power the AI buildout.

While 2025 was dominated by GPU makers and semiconductor stocks, 2026 is revealing a different infrastructure challenge: AI data centers require massive, reliable, 24/7 power that the current U.S. grid is unprepared to deliver, according to ALPS Q2 2026 Market Themes to Watch.