ETF provider HANetf has launched the Defiance Photonics Ucits ETF, offering investors exposure to companies involved in the development, manufacturing and commercialisation of technologies using light.
The ETF targets businesses across the photonics value chain, focusing on optical hardware that uses light rather than electricity to generate, transmit and process data.
According to JP Morgan, global investment in AI and data centre infrastructure could exceed $5tn by 2030, driving demand for technologies supporting faster and more efficient data transmission.
Photonics is becoming important in data centres, where optical technologies can replace or complement traditional electrical connections between chips, servers and networking equipment. Optical interconnects can transfer larger volumes of data over longer distances while consuming less power, helping address growing bandwidth, latency and energy challenges as AI workloads expand.
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Photonic technologies are also being adopted in cloud computing, high-performance computing, telecommunications and next-generation connectivity, reflecting broader demand for faster and more energy-efficient data movement.
The ETF invests across segments of the photonics ecosystem, including optical components and light sources, photonic semiconductors and interconnect chips, optical systems and networking, photonic foundries and manufacturing infrastructure and enabling materials. Its holdings span technologies such as lasers, transceivers, fibre arrays, connectors, photonic integrated circuits, optical interposers and modulators.
The fund has a total expense ratio of 0.69% and is listed on the London Stock Exchange in both US dollar and sterling share classes, as well as on Borsa Italiana in euros.
