Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Turn on the Lights to the Utilities Spending Boom With This ETF

BY | ETF Database
9:46 am ET 08/18/26 | 6 VIEWS
Domestic for-profit utilities are spending big to meet the artificial intelligence (AI) demand moment. Regulatory Research Associates estimates that from 2026 through 2030, U.S. utilities will shell out a staggering $1.3 trillion to meet AI-related demands while enhancing reliability and modernizing power grids.With that comes significant investment implications and opportunities. However, not all AI ETFs are adequately positioned to capitalize. The ALPS Electrification Infrastructure ETF (ELFY ) is. ELFY, which turned a year old in April, isn’t a dedicated utilities ETF. That said, it allocates 35.67% of its portfolio to that sector. That indicates that its credibility as a complement to broad market funds with scant utilities exposure. By emphasizing the electrification infrastructure theme, ELFY provides efficient exposure to the utility stocks with credible leverage to that theme. That’s a vital attribute against the backdrop of soaring, AI-induced spending.ELFY ExcellenceData centers and efforts to reshore manufacturing jobs are propelling utilities sector spending. That could spell long-term opportunity for ELFY investors. “Data centers, along with other large industrial loads such as new manufacturing facilities, are fueling the need for new power supplies through 2035, adding 374 TWh of energy demand and over 45 GW of peak load,” noted S&P Global Market Intelligence. Potentially adding to the long-term potency of ELFY, utilities spending focuses on more than just AI. As some experts point out, power grids across the U.S. direly need refreshing, as a matter of national security. Some ELFY member firms are leading that charge. “Capex programs are targeted at infrastructure modernization to enhance grid reliability and resiliency, alongside a significant build-out of new generation and transmission capacity to meet continuing data center growth and the need to connect to new resources,” added S&P. Another benefit offered by ELFY: the potential for outperformance of standard utilities strategies. Helped by significant exposure to industrial and energy stocks (more than 45% of the ETF’s portfolio), the ALPS ETF is up more than 22% year-to-date. That represents about six times the returns offered by a typical benchmark utilities ETF. For more news, information, and analysis, visit the ETF Building Blocks Content Hub. 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.

More Commentary

How RANK Blends Analyst Consensus With Technical Signals
BY | ETF Database
10:44 am ET 08/18/26 | 5 VIEWS
VIDEO: ETF of the Week: FBCG
BY | ETF Database
8:53 am ET 08/18/26 | 16 VIEWS
Quality & Rate Protection in a Single Bond ETF
BY | ETF Database
7:09 am ET 08/18/26 | 26 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.