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AI Pivot: Electrification Infrastructure in Focus

BY | ETF Database
12:18 pm ET 05/06/26 | 7 VIEWS
While 2025 was dominated by GPU makers and semiconductor stocks, 2026 is revealing a different infrastructure challenge: AI data centers require massive, reliable, 24/7 power that the current U.S. grid is unprepared to deliver, according to ALPS Q2 2026 Market Themes to Watch. The shift from “headline AI” to physical infrastructure is creating growth opportunities among companies building the backbone of the electrified economy, per ALPS. Three electrification ETFs from ALPS offer distinct approaches to this theme, targeting grid upgrades, nuclear power resurgence, and renewable energy expansion. The ALPS Electrification Infrastructure ETF (ELFY ) has posted a 27.3% year-to-date return and a 12.2% one-month return, according to ETF Database. The fund targets 18 electrification-linked sub-industries building and upgrading the power grid across utilities, industrials, energy, technology, materials and select consumer discretionary sectors. ELFY’s top holdings include Bloom Energy Corp. (BE) at 1.53%, Applied Optoelectronics, Inc. (AAOI) at 1.36%, Powell Industries, Inc. (POWL) at 1.31%, and Argan, Inc. (AGX) at 1.27%, per ETF Database. Companies like Bloom Energy and Powell Industries provide critical hardware for power management and generation. The fund holds $183.7 million in assets under management with a 0.50% expense ratio.Nuclear & Clean Energy Complete Electrification LineupThe ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF) launched in February, offering targeted exposure to the nuclear and small modular reactor value chain as a solution for the reliable power deficit. The fund returned 16.5% over the past month, according to ETF Database. SMRF’s top holdings include Oklo Inc. (OKLO) at 5.76%, Energy Fuels Inc. (UUUU) at 4.73%, National Atomic Co.(KAP) at 4.36%, NexGen Energy Ltd. (NXE) at 4.35%, and Uranium Energy Corp. (UEC) at 4.33%, per ETF Database. The fund is heavily weighted in the nuclear cycle, capturing the emerging SMR trend as tech giants increasingly eye nuclear to power proprietary data centers. The ALPS Clean Energy ETF (ACES B) provides pure-play exposure to renewable generation needed to meet carbon-neutral goals while scaling power to meet competing demands from AI, supply chain reshoring, and consumer electrification, according to ALPS. The fund has rebounded with a 12.3% year-to-date return and an 8.79% one-month return, per ETF Database. Top ACES holdings include Plug Power (PLUG) at 5.63%, HA Sustainable Infrastructure Capital, Inc. (HASI) at 5.34%, Albemarle Corp. (ALB) at 5.33%, Nextpower Inc. (NXT) at 5.22%, and First Solar, Inc. (FSLR) at 5.07%, according to ETF Database. Holdings like Plug Power and First Solar serve as enablers of a diversified energy mix. The fund holds $127.1 million in assets. For more news, information, and analysis, visit the ETF Building Blocks Content Hub. VettaFi LLC (“VettaFi”) is the index provider for ELFY and SMRF, for which it receives an index licensing fee. However, ELFY and SMRF are 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 and SMRF.

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