Buy Utilities At 16x While Demand Climbs

The Global X U.S. Electrification ETF (ZAP) offers targeted exposure to both utilities and industrials benefiting from U.S. electrification and grid modernization trends. ZAP’s unique blend—77.2% utilities, 22.8% industrials—positions it to capture growth from rising industrial electricity demand and ongoing infrastructure buildout. Utilities sector valuations have compressed due to rate hikes, but robust power demand and project backlogs support long-term upside for ZAP’s holdings. ZAP’s shorter track record and higher 0.50% expense ratio are key risks, but its dual-sector approach may cushion interest rate volatility.

The Global X U.S. Electrification ETF (ZAP) offers targeted exposure to both utilities and industrials benefiting from U.S. electrification and grid modernization trends. ZAP’s unique blend—77.2% utilities, 22.8% industrials—positions it to capture growth from rising industrial electricity demand and ongoing infrastructure buildout. Utilities sector valuations have compressed due to rate hikes, but robust power demand and project backlogs support long-term upside for ZAP’s holdings. ZAP’s shorter track record and higher 0.50% expense ratio are key risks, but its dual-sector approach may cushion interest rate volatility.