The ALPS Electrification Infrastructure ETF (ELFY) delivered strong performance in May, returning 8.91%.
The newest addition to the SS&C ALPS Advisors lineup offers targeted exposure to companies benefiting from the rising demand of electricity. The passively managed fund aims to replicate the performance of its underlying index, the Ladenburg Thalmann Electrification Index (LTELFYX). This index targets businesses involved in electric grid upgrades, industrial electrification equipment, utilities, and energy infrastructure. As advancements in artificial intelligence (AI) and industrial growth push power requirements to new heights, ELFY stands poised to capture this multiyear growth cycle.
Industrial Sector Leads the Charge
ELFY’s Industrial sector was the standout performer last month. Companies involved in grid development and infrastructure expansion reported strong earnings, boosting the sector’s overall returns. For example, NEXTracker Inc. (NXT), a leading solar panel manufacturer with a 1.62% weighting in ELFY, surged 39.6% as it saw a significant increase in orders and backlog.
Similarly, Regal Rexnord (RRX), a factory automation company weighing 1.49% in the fund, gained more than 26%. The company’s earnings and revenue topped estimates, thanks to rising demand for humanoid robots despite the challenges posed by high tariffs.
Lastly, Rockwell Automation (ROK), an industrial automation firm representing 1.53% of ELFY, jumped nearly 28%. The company’s management raised revenue expectations for 2025, driven by strong margins in both hardware and software.
Utilities & Energy Also Shine
While industrials led the gains, ELFY’s utilities and energy holdings also enjoyed positive momentum. NRG Energy Inc. (NRG), a power generation company with a 1.91% weighting, surged 42.8% after announcing plans to acquire a fleet of natural gas plants for $12 billion.
Cameco Corp. (CCJ), a nuclear power player at 1.68% weight, rallied nearly 30% following executive orders aimed at easing regulatory barriers for the nuclear industry.
Looking Ahead
This infrastructure and electrification boom is expected to continue for years, supported by government subsidies and policy initiatives. As the U.S. faces rising power demands, ELFY captures a unique blend of industrial innovation, utility strength, and energy transition, making it a compelling option for those looking to invest in the electrification boom.
VettaFi LLC (“VettaFi”) is the index provider for ELFY, for which it receives an index licensing fee. However, ELFY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ELFY.
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