Global X U.S. Electrification ETF

ZAP

Market cap $193M

The Global X U.S. Electrification ETF (ZAP) was launched on December 17, 2024, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.

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.

The Trump administration has promoted an energy policy favorable to oil and gas, but the utilities sector within the S&P 500 has been the much stronger performer this year. The Utilities Select Sector SPDR (XLU) has tripled the return generated by the Energy Select Sector SPDR (XLE) this year.

After more than a decade of lackluster performance, established international and emerging markets are growing in popularity. What's driving this, and what could derail this investor enthusiasm?

Global X U.S. Electrification ETF is a buy, positioned to benefit from the accelerating U.S. electrification megatrend driven by EVs, AI, and infrastructure upgrades. ZAP's focused portfolio blends utilities and industrials, targeting leaders like Vistra, Constellation Energy, and Quanta Services for strong growth and value potential. The ETF offers attractive financials: a 0.50% expense ratio, a 1.01% dividend yield, and a valuation lower than averages, making it compelling for growth and income investors.