VanEck is launching a new ETF, the VanEck Electrification and Power Infrastructure UCITS ETF, focused on the global expansion of power grids, energy storage, and infrastructure.
The ETF invests globally in companies across the electrification value chain: batteries and energy storage, industrial electrification and energy management, grid infrastructure and connectivity, as well as utilities and independent power producers.
“Electrification is set to become one of the most important infrastructure and investment themes in the coming years,” says Martijn Rozemuller, CEO, VanEck Europe.
“Driven by data centres, artificial intelligence, electric mobility, and the electrification of industrial processes, global electricity demand is rising. Modern energy infrastructure is therefore a key competitive advantage and a fundamental factor for long-term prosperity.” However, growing electricity demand often meets outdated grids and a significant need for modernisation, which can lead to high energy costs for consumers and businesses.
“Global investment in power grids is expected to exceed USD1.5 trillion per year through the 2050s—far more than the USD 533 billion currently invested each year,” says Alessandro Valentino, Product Manager at VanEck. “This could make the sector one of the largest investment opportunities of the coming decades—because without grids, storage, power management, industrial control technology, and resilient supply structures, rising electricity demand cannot be met. Our ETF specifically focuses on the companies providing this infrastructure.” High returns are not guaranteed, and capital losses are possible.
With the new VanEck Electrification and Power Infrastructure UCITS ETF, VanEck seeks to provide investors with diversified exposure to companies driving the expansion and transformation of global energy infrastructure.
The ETF tracks the MarketVector Electrification Index. In principle, to be included in the index, companies must generate at least 50 per cent of their revenue from one or more of these sectors. The index currently includes 25 companies, with individual weightings capped at 8 per cent. The index is deliberately not designed as a clean energy index: companies that generate 50 per cent or more of their revenue from the generation, transmission, or distribution of electricity from renewable sources are not eligible.
