Investors Flock to ETFs Backing Power and Nuclear for AI

Investors increased allocations to exchange-traded funds that target the power and nuclear sectors used to support advanced AI. The Defiance AI and Power Infrastructure ETF (AIPO) has gained more than 40% year-to-date and is approaching $800 million in assets under management. The ALPS Electrification Infrastructure ETF (ELFY) is up about 30% year-to-date. The Global X Uranium ETF (URA) holds roughly $7 billion in assets.

Market participants say attention has shifted from AI software toward the physical infrastructure that powers large AI systems. Emerging, more autonomous AI workloads require continuous, high-capacity electricity. Large cloud operators and technology firms are pursuing long-term power contracts, including deals tied to nuclear generation, and upgrades to transmission networks.

AIPO focuses on companies that supply the physical backbone of data centers. Its holdings include hardware vendors, providers of liquid cooling systems and companies that supply localized power generation. The fund drew notable institutional interest in its first full year of trading.

ELFY takes a broader approach across the electrification economy. The fund includes electrical equipment manufacturers and firms involved in transmission and grid modernization. ELFY uses a strict equal-weight methodology and trims top performers quarterly to reduce concentration in a few large stocks and maintain exposure to smaller infrastructure and engineering firms.

Investor activity in nuclear-related ETFs shows a split between upstream commodity exposure and downstream construction and grid infrastructure. URA remains the largest uranium-focused ETF with about $7 billion in assets and more than $850 million in recent net inflows; its holdings mix mining companies with firms that integrate nuclear components.

The Sprott Uranium Miners ETF (URNM) has about $2 billion in assets. Its mandate requires constituents to derive at least half of their revenue from uranium mining, exploration, development or holding physical uranium, which links the fund more directly to uranium price moves.

The Range Nuclear Renaissance Index ETF (NUKZ) has roughly $835 million in assets and emphasizes equipment and construction names. NUKZ’s weighting tilts toward Industrials and Utilities and includes makers of reactor components and developers of small modular reactors, some of which have announced partnerships with hyperscalers to provide dedicated low‑carbon power for data centers.

Renewable energy ETFs also saw inflows. Global clean energy ETFs recorded more than $3 billion in net cash in April, bringing total assets in the sector to about $43 billion. The ALPS Clean Energy ETF (ACES), which tracks North American companies across solar, wind, storage and grid-management software, is up about 20% year-to-date.

Index-provider relationships and fund construction affect investor exposure. VettaFi LLC is the index provider for ELFY and NUKZ and receives an index licensing fee; VettaFi is not the issuer, sponsor or seller of those ETFs and does not have obligations related to their issuance, administration, marketing or trading. Fund mandates, weighting methods and revenue or asset screens differ across products and shape how each ETF tracks parts of the power and nuclear value chains.