First Trust’s GRID fund surges 23% in 2026, tripling XLU’s return, as data center equipment orders fuel growth.
The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) has risen 23% year-to-date, outpacing the Utilities Select Sector SPDR Fund (NYSEARCA:XLU) by nearly threefold. GRID’s gains stem from holdings in equipment makers and contractors, which benefit directly from AI-driven data center demand, rather than regulated utilities with slower capital recovery cycles.
GE Vernova reported $2.4 billion in data center equipment orders in Q1 2026 alone, while Quanta Services reached a record $48 billion backlog. XLU, by contrast, holds regulated utilities like NextEra Energy and Southern Company, which recover costs over decades through rate cases, limiting near-term earnings impact.
Despite its strong performance, GRID’s 0.56% expense ratio and roughly 1% dividend yield make it less attractive for income-focused investors compared to XLU’s 0.08% fee and higher payouts.