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ZAP - ETF AI Analysis

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ZAP

Global X U.S. Electrification ETF (ZAP)

Rating:69Neutral
Price Target:
ZAP, the Global X U.S. Electrification ETF, has a solid overall rating driven mainly by strong, well-positioned holdings like Ametek and Quanta Services, which show robust financial performance, positive earnings calls, and supportive technical trends despite some valuation concerns. The fund is held back somewhat by utilities such as Consolidated Edison, Entergy, and Dominion Energy, where high debt, leverage, liquidity issues, and bearish technical signals introduce risk. The main risk factor is the ETF’s heavy tilt toward utility and energy-related names, which can expose investors to sector-specific pressures like high capital needs and cash flow challenges.
Positive Factors
Solid Year-to-Date Performance
The ETF has delivered positive returns so far this year, showing generally favorable momentum for its strategy.
Strong Core Utility Holdings
Many of the largest utility and infrastructure stocks in the portfolio have shown steady to strong gains, helping support the fund’s overall results.
Focused Electrification Theme
The fund targets U.S. companies tied to electrification, giving investors a clear way to invest in this long-term infrastructure and energy transition trend.
Negative Factors
High Sector Concentration in Utilities
With most of the portfolio in utilities, the ETF is heavily exposed to the fortunes and regulatory environment of a single sector.
Limited Geographic Diversification
Almost all assets are invested in U.S. companies, which means the fund offers little protection if the U.S. market or economy weakens.
Moderate Expense Ratio
The fund’s fees are not especially low, so costs may weigh more on returns compared with cheaper broad-market ETFs.

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

ZAP Summary

The Global X U.S. Electrification ETF (ZAP) tracks the Global X US Electrification Index, focusing on the theme of electrification across U.S. infrastructure. It mainly holds utility and industrial companies that help build and run the electric grid, renewable power, and related equipment. Well-known holdings include NextEra Energy and American Electric Power. Someone might invest in ZAP to benefit from long-term growth as the U.S. shifts toward cleaner energy and more electric power use, while getting diversification across many companies. A key risk is that it is heavily concentrated in utility and infrastructure stocks, so it can rise or fall 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 leaning heavily into U.S. utilities, with names like Quanta Services and Eaton doing much of the heavy lifting as their momentum stays firmly in the “rising” camp. Ametek and National Grid are also pulling their weight, adding steady growth to the mix. On the other side, classic utilities such as Consolidated Edison and Dominion Energy look more sluggish, with weaker technical trends acting like a brake on returns. Overall, this is a U.S.-centric bet on electrification infrastructure, not a broad global or tech-heavy play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Quanta Services5.04%$17.94M$83.64B114.34%
78
Outperform
National Grid Transco4.54%$16.16M$90.38B43.81%
74
Outperform
Ametek4.45%$15.84M$49.11B21.77%
79
Outperform
American Electric Power4.31%$15.35M$72.26B26.57%
69
Neutral
Consolidated Edison4.30%$15.31M$41.51B7.96%
62
Neutral
Entergy4.20%$14.94M$47.83B24.23%
66
Neutral
NextEra Energy4.17%$14.85M$193.31B26.14%
71
Outperform
Dominion Energy3.97%$14.14M$55.55B15.60%
63
Neutral
Exelon3.96%$14.10M$50.96B12.74%
67
Neutral
Duke Energy3.93%$13.97M$103.55B10.85%
70
Outperform

ZAP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
31.39
Positive
100DMA
30.61
Positive
200DMA
29.12
Positive
Market Momentum
MACD
0.31
Positive
RSI
56.00
Neutral
STOCH
46.14
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ZAP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 32.83, equal to the 50-day MA of 31.39, and equal to the 200-day MA of 29.12, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZAP.

ZAP Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$358.87M0.50%
69
Neutral
$808.99M0.38%
71
Outperform
$697.85M0.30%
70
Outperform
$596.15M0.65%
73
Outperform
$141.20M0.50%
69
Neutral
$127.86M0.40%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZAP
Global X U.S. Electrification ETF
32.63
8.50
35.23%
IYZ
iShares U.S. Telecommunications ETF
SIXG
Defiance Connective Technologies Etf
FEPI
REX FANG & Innovation Equity Premium Income ETF
ELFY
ALPS Electrification Infrastructure ETF
POWR
Ishares U.S. Power Infrastructure 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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