Adding to the firm’s growing roster, SS&C ALPS Advisors has added a new ETF to its suite. The firm launched the Electrification Infrastructure ETF (ELFY) in partnership with Ladenburg Thalmann Index, LLC. ELFY offers exposure to mid and large-cap firms poised to benefit from growing electrification.
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ELFY, listed on the Nasdaq, charges a 50 basis point fee for its services. The strategy could benefit from a long-term trend towards electrification across the U.S. economy.
“Government and Industry in the United States are committing to a multi-decade investment in electrification infrastructure, creating one of the most durable investment themes in today’s market," said Laton Spahr, Portfolio Manager and President of SS&C ALPS Advisors.
“We are in the early innings of a seismic shift in United States electricity demand growth,” Mark McLain, chief index officer and managing member of Ladenburg Thalmann Index, LLC, added. “ELFY provides investors with an equal-weighted, sector-diverse vehicle to participate alongside the companies powering the electrification of America for years to come.”
Specifically, the strategy would offer exposure to areas like charging, equipping, supplying, or operating with electricity. It also includes firms transitioning machines or operations to electricity. ELFY targets firms in industries including both renewable and non-renewable electricity generation. Per its prospectus, firms included in the index must have a minimum market cap of at least $5 billion. Those firms must also have a minimum three-month average daily trading volume of more than $5 million.
The fund could provide a strong satellite ETF offering for investors looking to bolster their equity portfolios. Specifically, ELFY could help get exposure to a changing energy grid without needing to rely solely on renewables. In a shifting landscape for energy, the fund could provide an intriguing option for curious investors.
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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.
