Global X U.S. Infrastructure Development ETF captures AI data center buildout gains with 119 holdings in power, steel, and cooling sectors.
Global X U.S. Infrastructure Development ETF (PAVE) has delivered a 132% return over five years, outperforming the S&P 500 ETF (SPY), which returned 73%. The fund focuses on companies in power, steel, cooling, and rail sectors critical to AI data center construction, addressing gaps left by semiconductor-focused ETFs like SMH.
PAVE holds 119 positions in engineering, electrical, and materials firms, benefiting from reshoring and infrastructure tailwinds. Its 0.47% fee is competitive with thematic ETFs, but rate sensitivity remains a risk, with the 10-year Treasury yield at 4.51% pressuring construction and capex-heavy holdings.
While SMH concentrates risk in chip pricing and foundry cycles, PAVE diversifies exposure to the physical infrastructure supporting AI growth. The fund’s performance reflects broader market trends beyond semiconductor demand.