ZAP - ETF AI Analysis
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Global X U.S. Electrification ETF (ZAP)
ZAP, the Global X U.S. Electrification ETF, earns a solid overall rating thanks to several strong industrial and energy infrastructure holdings like Ametek and Quanta Services, which show robust financial performance, positive earnings calls, and supportive technical trends that help drive the fund’s quality. At the same time, traditional utilities such as Dominion Energy and Consolidated Edison, while offering stable income and reasonable valuations, face bearish momentum, high debt, and cash flow challenges that modestly weigh on the fund’s rating. The main risk factor is the ETF’s concentration in utility and energy-related names, where common issues like high leverage, cash flow pressures, and occasional overvaluation could hurt returns if sector conditions worsen.
ZAP vs. SPDR S&P 500 ETF (SPY)
- AUM
- 439.60M
- Region
- North America
- Expense Ratio
- 0.50%
- Beta
- 0.47
- Issuer
- Global X
- Inception Date
- Dec 17, 2024
- Dividend Yield
- 1.90%
- Asset Class
- Equity
- Index Tracked
- Global X US Electrification Index - Benchmark TR Net
ZAP Summary
The Global X U.S. Electrification ETF (ZAP) follows the Global X US Electrification Index, focusing on the growing theme of electrification in the United States. It mainly holds U.S. utility and industrial companies that build and run the power lines, grids, and equipment needed for electric vehicles, renewable energy, and energy storage. Well-known holdings include Dominion Energy and Duke Energy. Someone might invest in this ETF to benefit from long-term growth in cleaner energy and to get diversified exposure to many power-related companies at once. A key risk is that it is heavily tied to utility and infrastructure stocks, so its price can rise or fall sharply with that sector.
How much will it cost me?
The Global X U.S. Electrification ETF (Ticker: ZAP) has an expense ratio of 0.50%, which means you’ll pay $5 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad-market index funds. However, this cost reflects the specialized exposure to the growing electrification sector.
What would affect this ETF?
The Global X U.S. Electrification ETF (ZAP) could benefit from increased government support for renewable energy and electrification initiatives, as well as growing consumer demand for electric vehicles and energy-efficient technologies. However, it may face challenges from rising interest rates, which can increase borrowing costs for infrastructure projects, and potential regulatory hurdles or delays in transitioning away from fossil fuels. Its heavy exposure to the utilities sector makes it sensitive to changes in energy policies and market dynamics.
ZAP Top 10 Holdings
ZAP is essentially a bet on U.S. electrification infrastructure, with a heavy tilt toward utilities and industrials powering the grid transition. Eaton, Ametek, and Quanta Services have been rising steadily, acting as the fund’s main engines thanks to solid earnings and electrification-focused backlogs. Bloom Energy adds a more volatile, high-growth flavor that’s helped performance this year. On the flip side, traditional utilities like Dominion, Duke, and Southern are lagging, dampening returns as they wrestle with debt and weaker momentum. Overall, it’s a U.S.-centric, grid-and-power story with a few higher-octane names in the mix.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 BE | Bloom Energy | 4.74% | $20.83M | $66.63B | 128.52% | 62Neutral |
 AME | Ametek | 4.56% | $20.03M | $56.68B | 32.92% | 79Outperform |
 PWR | Quanta Services | 4.48% | $19.66M | $92.97B | 37.43% | 78Outperform |
 ED | Consolidated Edison | 4.34% | $19.06M | $40.42B | 10.10% | 62Neutral |
 D | Dominion Energy | 4.34% | $19.07M | $54.72B | 2.40% | 63Neutral |
 SO | Southern Co | 4.11% | $18.06M | $102.69B | -6.81% | 68Neutral |
 ETN | Eaton | 4.20% | $18.44M | $152.06B | 5.48% | 75Outperform |
 AEP | American Electric Power | 4.06% | $17.86M | $67.90B | 8.48% | 69Neutral |
 DUK | Duke Energy | 4.06% | $17.83M | $93.00B | -5.97% | 70Outperform |
 XEL | Xcel Energy | 4.04% | $17.73M | $46.94B | -4.79% | 61Neutral |
ZAP Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ZAP, the sentiment is Negative. The current price of 31.24 is above the 20-day moving average (MA) of 30.97, below the 50-day MA of 31.39, and below the 200-day MA of 32.16, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZAP.
ZAP Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| ZAP | $31.24 | $35.00(12.04% Upside) | $439.60M | 0.50% | 69Neutral |
 IYZ | $39.49 | $52.20(32.20% Upside) | $964.87M | 0.37% | 69Neutral |
 AIPO | $26.02 | $37.88(45.58% Upside) | $847.73M | 0.69% | 67Neutral |
 UFOX | $80.89 | $110.64(36.78% Upside) | $815.61M | 0.30% | 65Neutral |
 POWR | $24.92 | $30.58(22.72% Upside) | $437.54M | 0.39% | 70Outperform |
 ELFY | $38.01 | $49.78(30.97% Upside) | $180.75M | 0.50% | 66Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ZAP | Global X U.S. Electrification ETF | 31.24 | 1.53 | 5.16% | |
| IYZ | iShares U.S. Telecommunications ETF | 39.49 | 8.00 | 25.40% | |
| AIPO | Defiance AI & Power Infrastructure ETF | 26.02 | 2.17 | 9.10% | |
| UFOX | Defiance Connective Technologies Etf | 80.89 | 16.61 | 25.83% | |
| POWR | Ishares U.S. Power Infrastructure Etf | 24.92 | 0.96 | 3.99% | |
| ELFY | ALPS Electrification Infrastructure ETF | 38.01 | 1.90 | 5.27% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.