Global X ETFs Europe has launched the Global X US Electrification Ucits ETF, targeting companies expected to benefit from rising electricity demand and electrification trends in the US.
The ETF has listed on the London Stock Exchange and Deutsche Börse Xetra, with additional listings on Borsa Italiana and SIX Swiss Exchange planned shortly.
The fund is a part of the firm’s thematic ETF range and tracks the Mirae Asset US Electrification Ucits Index. The fund carries a total expense ratio of 0.47%.
The launch comes amid expectations of growth in US electricity demand, driven by AI data centres, manufacturing expansion and electric vehicles, shared the provider. According to figures cited by the firm, US electricity demand could rise by as much as 50% by 2040.
The ETF aims to provide exposure across the electricity value chain, including utilities, equipment manufacturers, grid component suppliers, energy management providers and infrastructure companies expected to benefit from investment in power generation, transmission, distribution and storage.
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Global X, a member of Mirae Asset Financial Group, said US utilities have already outlined plans to invest at least $1.4 trillion by 2030 to expand electricity generation capacity and modernise the power grid.
“The proliferation of artificial intelligence, rising industrial activity, and the steady electrification of vehicles appear to be driving a significant increase in U.S. electricity demand, making expansion and modernisation of the power grid increasingly important for the U.S. to maintain its economic competitiveness and leadership,” said Andrew Ye, thematic investment strategist at Global X ETFs Europe.
“US electrification is part of the broader infrastructure value chain, which continues to evolve in line with the needs of the modern economy,” says George Taylor, chief operating officer and co-head of Europe. “We are pleased to be launching Zapp which will be our fourth fund that aims to provide exposure to this area. It will join our existing funds which focus on US, European and digital infrastructure, all of which aim to create potential opportunities for European investors by capturing different elements of the increased investment within infrastructure development.”
