While everyone’s been losing their minds over NVIDIA and whether AI is the next big thing or just expensive hype, there’s this sneaky little ETF that’s been absolutely demolishing the S&P 500 – and it’s not even trying that hard.
Meet the Tema Electrification ETF (VOLT) – yes, that’s actually its ticker symbol, because apparently someone has a sense of humor. This thing is up 31% year-to-date while the S&P 500 is doing its usual “steady Eddie” routine. And here’s the kicker: the smart money thinks it could beat the market by 20% through 2027.
So what’s the deal?
While everyone’s been arguing about whether ChatGPT will steal their jobs, VOLT has been quietly buying up all the boring stuff that makes AI actually work. We’re talking power companies, data center infrastructure, and the electrical grid – basically all the unsexy plumbing that keeps the AI party running.
Think about it: OpenAI’s new Stargate project needs enough electricity to power entire cities. That’s not a typo. Cities. Plural. And guess what happens when you need to power the equivalent of Las Vegas just to run some chatbots? Someone’s gotta build a lot more power lines.
The numbers are actually insane
Global electricity demand is expected to more than double by 2030 – from 415 terawatt hours to 945 terawatt hours. For context, that’s like adding several entire countries worth of power consumption in just six years. The US alone is looking at 15% annual growth in energy demand, which in infrastructure terms is basically “hold onto your hats” territory.
And here’s the fun part: America’s power grid currently has a D+ rating from civil engineers. That’s right, the same grade you got in high school chemistry is what’s keeping the lights on. So we’re not just talking about building new stuff – we’re talking about fixing the old stuff too.
The portfolio that makes sense
VOLT’s top holdings include companies like Powell Industries (they make electrical equipment), NextEra Energy (one of the biggest utility companies), and Bel Fuse (they make the tiny components that keep everything connected). Not exactly household names, but these are the companies that’ll be printing money while everyone else argues about AI ethics.
The reality check
Now, before you mortgage your house to buy VOLT, remember that Big Tech is spending an absolutely bonkers $349 billion on AI infrastructure this year. That’s real money chasing real infrastructure, but it’s also the kind of spending that makes people nervous about bubbles.
The difference is that VOLT isn’t betting on whether AI will change the world – it’s betting that whatever happens, we’re going to need a lot more electricity. And honestly? That’s probably the safest bet in tech right now.
Sometimes the best investment isn’t the flashy new thing everyone’s talking about. Sometimes it’s the boring stuff that makes the flashy thing actually work.