The ALPS Electrification Infrastructure ETF (ELFY ) is drawing investor attention as U.S. electricity demand heads for its fastest growth in decades, driven by artificial intelligence data centers, manufacturing reshoring, and expanding electric vehicle infrastructure.
The fund has pulled in $79.9 million over the past six months and $37.1 million in the last three months, according to ETF Database data. ELFY is up 2.5% over the past three months.
U.S. electricity demand is expected to grow more than 8% through 2029, according to a white paper from ALPS. That compares to annual growth of just 0.4% over the past 20 years. The dramatic shift will require annual grid investment of $100 billion by 2030 to meet surging power needs.
The fund tracks an index of large- and midcap companies benefiting from electrification, with holdings equally weighted across the portfolio. The ETF charges a 0.27% expense ratio.
AI-driven data centers alone are expected to consume 11% to 15% of total U.S. electricity generation by 2030, according to the white paper. That’s up from 6% to 8% today. The surge comes alongside increased power demand from manufacturing facilities returning to American soil. and the buildout of electric vehicle charging networks.
ELFY's Top Holdings
Bloom Energy Corp. (BE) represents the fund’s largest position at 1.5% of assets, followed by Coherent Corp. (COHR) at 1.4% and Nextpower Inc. (NXT) at 1.4%, according to ETF Database. Other major holdings include Dycom Industries, Inc. (DY), First Solar, Inc. (FSLR), and NextEra Energy, Inc. (NEE).
The fund provides exposure to electric and gas utilities, power plant developers, equipment suppliers, electrical contractors, and midstream energy companies.
The last time U.S. electricity demand grew at rates matching or exceeding GDP growth was during the 1930s–1940s and 1960s, according to the white paper. That’s when refrigeration and air conditioning technology advanced.
VettaFi LLC (“VettaFi”) is the index administrator and calculation agent for ELFY, for which it receives a fee. However, ELFY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ELFY.
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