Aura AI Photonics ETF launches, targeting AI data center optical tech amid hyperscaler spending watch.

The Aura AI Photonics ETF (PHOX) began trading, focusing on companies supplying optical components for AI data centers. It tracks the VettaFi AI Photonics Index and aims to capitalize on the growing demand for photonics technology, which addresses bandwidth and power issues in AI infrastructure. Investors should monitor 2027 capital spending by major hyperscalers, as it directly impacts PHOX's holdings. The fund also carries risk from companies with mixed business lines, making it important to watch index rebalances for purity of photonics exposure.