Fund will focus on companies engaged in U.S. power grid infrastructure modernization, expansion of data centers, and conventional and alternative electricity generation
NEW YORK, Dec. 18, 2024 -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X U.S. Electrification ETF (ZAP). The fund, which seeks to provide investment exposure to companies that potentially stand to benefit from increased electricity demand and electrification within the U.S., underscores Global X's commitment to providing investors access to innovative, disruptive themes.
U.S. electricity demand is projected to increase 47% between 2024 and 2040, driven in part by the expansion of artificial intelligence (AI) data centers, a resurgence in manufacturing, and the adoption of electric vehicles[i]. ZAP seeks to provide exposure to the entire electricity value chain, including companies that are involved in conventional and alternative electricity generation, as well as the modernization, development, and implementation of grid infrastructure and smart grid technologies.
"We are seeing a growing movement to significantly expand power generation and grid infrastructure as electricity demand in the U.S. rises," said Madeline Ruid, Research Analyst at Global X. "We see unmatched opportunity within the electrification space to harness the tailwinds of trends that are supercharging innovation worldwide, like AI, energy infrastructure, and clean technology."
ZAP is the latest addition to Global X's suite of over 30 Thematic Growth ETFs.
"We may be on the brink of elevated demand across energy sectors in the U.S., and increased electricity capabilities has the potential to be the bedrock of that innovation and development," added Pedro Palandrani, Head of Product Research & Development at Global X. "ZAP embodies our commitment to providing investors with access to high-conviction, long-term themes which aim to help investors position their portfolios for disruptive change."
The Global X US Electrification ETF (ZAP) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X US Electrification Index. The fund has a total expense ratio of 0.50%.
About Global X ETFs
Global X ETFs was founded in 2008. For more than fifteen years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and over $55 billion in assets under management.[ii] While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Risk Management funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $600 billion in assets under management worldwide.[ii] Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam.
Important Information
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment advice and should not be used for trading purposes. Please consult a financial advisor professional for more information regarding your investment situation.
Investing involves risk, including the possible loss of principal. Narrowly focused investments will be more susceptible to factors affecting that sector and subject to more volatility. ZAP is non-diversified.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the fund's investment objectives, risks, and charges and expenses before investing. This and other information can be found in the fund's full or summary prospectuses, which may be obtained at globalxetfs.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to the Global X Funds. The Fund is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. The Global X U.S. Electrification Index is owned and was developed by Global X Management Company LLC for use by Global X Funds.
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