"While artificial intelligence has driven massive gains in tech stocks this year, a lesser-known exchange-traded fund focused on power infrastructure is quietly outpacing the broader market-and analysts say its best days may still be ahead. The Tema Electrification ETF (VOLT) has surged 33% year to date, significantly outperforming the S&P 500's roughly 17% gain over the same period. Now, according to Business Insider, analysts at Ned Davis Research are recommending the fund as an "Overweight" investment,"
"The fund's thesis centers on a straightforward premise: The AI boom requires enormous amounts of electricity, and the companies that generate, transmit, and support that power stand to benefit the most. Pat Tschosik, chief thematic strategist at Ned Davis Research, and analyst Phillippe Mouls described VOLT as offering "the most direct diversified exposure to the Datacenter Electrification theme," with substantial holdings in what they call "data center bellwethers"-companies positioned to benefit most from AI infrastructure buildout."
Ned Davis Research recommends an Overweight position in the Tema Electrification ETF (VOLT), which has climbed 33% year-to-date versus the S&P 500's roughly 17% gain. The fund targets companies that generate, transmit, and support power for data centers, holding names such as Powell Industries, NextEra Energy, and Bel Fuse across 29 positions with $168.3 million AUM as of Oct. 31. Global data-center electricity demand is projected to jump from 415 terawatt-hours in 2024 to 945 TWh by 2030, and U.S. commercial energy demand is expected to grow at about a 15% CAGR through the decade.
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