Wedbush Fund Advisers has launched the Dan IVES Wedbush AI Power & Infrastructure ETF (Ticker: IVEP), which it says will give advisors exposure to the companies powering the AI boom.
The ETF is based on the research of the Wedbush Securities technology research team, which includes Managing Director and Global Head of Technology Research Dan Ives, after whom it is named, and Seth Basham, managing director and director of equity research. The fund is built around Wedbush’s “IVES Power 30,” research report, which focuses on companies poised to benefit from rising electricity demand tied to AI. These include power generation, fuel supply, grid infrastructure and data centers, equipment and power management and materials and enabling technologies.
“As AI adoption accelerates, energy and infrastructure are emerging as critical bottlenecks,” said Cullen Rogers, chief investment officer of Wedbush Fund Advisers, in a statement. “Every dollar spent on AI ultimately requires energy, and the scale of demand is creating meaningful opportunities for the companies enabling that buildout. IVEP provides investors access to this physical backbone of AI.”
This is not completely new territory for Wedbush, which launched the Dan IVES Wedbush AI Revolution ETF (Ticker: IVES) in June last year. The ETF has risen more than 16% since its launch.
Wedbush estimates that U.S. data center electricity consumption could reach approximately 470 terawatt-hours by 2030, which is about 23% above current consensus forecasts. This is driven by AI workloads that require significantly more power than traditional cloud computing, according to Wedbush.
Energy is a key theme in the ETF market, thanks in no small part to the ongoing tensions between the U.S., Israel, and Iran that have sent oil prices soaring. Set against this backdrop, the Vanguard Energy Index Fund ETF Shares (Ticker: VDE), which includes oil, natural gas, and goal stocks has risen more than 30% this year. The State Street Energy Select Sector SPDR ETF (Ticker: XLE), which provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, has climbed more than 29% over the same period.
At the recent Exchange ETF conference in Las Vegas asset management giant State Street told InvestmentNews that it has seen material flows going into sectors like energy, materials, and infrastructure.
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