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RACK - ETF AI Analysis

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RACK

VanEck Data Center Supply Chain ETF (RACK)

Rating:66Neutral
Price Target:
RACK, the VanEck Data Center Supply Chain ETF, earns a solid overall rating largely because it holds several strong, AI-focused technology and semiconductor companies like Micron, Nvidia, Broadcom, Amphenol, Eaton, and Arista Networks, all benefiting from growth in AI, data centers, and related infrastructure. These leaders’ robust financial performance and strategic positioning in AI and cloud help support the fund’s quality, while weaker names like SanDisk, with profitability and valuation challenges, slightly weigh on the rating. The main risk is the fund’s heavy concentration in the data center and AI supply chain, which could make it more sensitive to downturns or valuation pressures in that specific sector.
Positive Factors
Strong Semiconductor and Networking Holdings
Key positions like Micron, Nvidia, Broadcom, Amphenol, Eaton, Arista Networks, and SanDisk have shown strong or steady performance, helping support the ETF’s returns despite recent weakness.
Targeted Data Center Supply Chain Exposure
The fund focuses on companies tied to data centers and related infrastructure, giving investors direct exposure to a growing long-term theme in technology and power demand.
Broad Sector Mix Within the Theme
Holdings spread across technology, industrials, utilities, energy, real estate, and communication services help reduce the impact of a downturn in any single industry within the data center ecosystem.
Negative Factors
Recent Weak Overall Performance
The ETF has shown weak performance over both the year-to-date and the past month, which may concern investors looking for near-term momentum.
Notable Underperforming Top Holdings
Several major positions, such as Constellation Energy, Cameco, and Public Service Enterprise, have lagged, weighing on the fund’s overall results.
High U.S. Market Concentration
With almost all assets in U.S. companies, investors face higher sensitivity to U.S. market and economic conditions and get little geographic diversification.

RACK vs. SPDR S&P 500 ETF (SPY)

RACK Summary

VanEck Data Center Supply Chain ETF (RACK) follows the MarketVector Data Center Supply Chain Index, focusing on companies that build and support data centers—the physical backbone of cloud computing and artificial intelligence. It holds well-known names like Nvidia and Micron, along with power and equipment providers that keep these facilities running. An investor might consider RACK for growth potential tied to long-term trends such as AI, cloud services, and increasing data usage, while also getting diversification across technology, industrials, and utilities. A key risk is that it’s concentrated in data-center related businesses, so it can go up and down more than the broader market.
How much will it cost me?This ETF has an expense ratio of 0.50%, which means you’ll pay about $5 per year for every $1,000 you invest. That’s higher than the average broad, passively managed index ETF because this fund focuses on a specialized sector and follows a more targeted index.
What would affect this ETF?RACK could benefit from long-term growth in cloud computing and artificial intelligence, which increase demand for data centers and support its global mix of technology, industrials, and utilities holdings like Nvidia, Micron, and power providers. On the downside, higher interest rates, stricter energy and environmental regulations, or a slowdown in tech spending could hurt data center expansion and weigh on the ETF’s performance.

RACK Top 10 Holdings

RACK is essentially a backstage pass to the data center boom, with heavyweight chipmakers like Nvidia, Broadcom, and Micron doing much of the lifting. Nvidia and Broadcom have been generally rising, while Micron’s ride has been more mixed, swinging between strong recent gains and short-term pullbacks. Arista Networks adds steady strength on the networking side, and Eaton helps power the physical infrastructure. On the flip side, nuclear-focused names like Cameco and Constellation Energy have been lagging, slightly dragging on returns. Overall, it’s a globally diversified but clearly data-center-and-semiconductor-centric play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Amphenol5.07%$2.67M$197.70B53.83%
78
Outperform
Broadcom4.93%$2.60M$1.85T40.26%
76
Outperform
Constellation Energy Corporation4.81%$2.53M$94.35B-19.62%
68
Neutral
Nvidia4.79%$2.52M$4.86T22.58%
76
Outperform
Eaton4.73%$2.49M$161.22B23.66%
75
Outperform
Micron4.39%$2.31M$929.52B638.14%
79
Outperform
Cameco4.35%$2.29M$37.55B26.61%
Public Service Enterprise4.00%$2.11M$38.21B-13.71%
66
Neutral
Arista Networks3.58%$1.89M$227.10B35.56%
83
Outperform
Oracle3.15%$1.66M$374.09B-41.20%
66
Neutral

RACK Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
-0.34
Negative
RSI
52.07
Neutral
STOCH
83.38
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RACK, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 46.88, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 83.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RACK.

RACK Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$53.80M0.50%
66
Neutral
$41.02M0.75%
60
Neutral
$15.04M
59
Neutral
$6.04M0.58%
67
Neutral
$3.96M0.50%
69
Neutral
$3.57M0.35%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RACK
VanEck Data Center Supply Chain ETF
48.57
-4.55
-8.57%
TEK
iShares Technology Opportunities Active ETF
GGTL
Gabelli Global Technology Leaders ETF
DAT
ProShares Big Data Refiners ETF
XDAT
Franklin Exponential Data ETF
EYES
Corgi Data & Surveillance ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis 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.Date of analysis: ―
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