Electrification ETF ELFY rises on data-center power demand

ALPS Electrification Infrastructure ETF (ELFY) rose as rising demand from data centers boosted stocks tied to power and electricity infrastructure. The fund has returned about 27% year-to-date and more than 50% over the trailing 12 months.

Data centers and artificial intelligence workloads are increasing electricity use. Forecasts show U.S. power demand may reach record levels in 2026 and 2027 to meet that load. Geopolitical tensions in the Middle East have pushed energy prices and inflation higher this year, contributing to investor focus on energy supply and grid capacity.

ELFY tracks the Ladenburg Thalmann Electrification Infrastructure Index and charges an annual fee of 50 basis points. The fund holds an equal-weight mix of mid- and large-cap companies involved in renewable generation, electrical distribution and transmission, battery technologies and related components. Its rules-based selection considers trading volume, market capitalization and subindustry classification.

Technical data show the fund’s share price trading above both its 50- and 200-day simple moving averages. The equal-weight structure spreads exposure across multiple mid- and large-cap firms rather than concentrating in a few names.

The index is provided under license by VettaFi LLC, which receives an index licensing fee. ELFY is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no responsibility for ELFY’s issuance, administration, marketing or trading.