XLU lags AI power theme; VOLT ETF outperforms with electrification equipment exposure.

The Utilities Select Sector SPDR Fund (XLU), popular for AI-related utility exposure, has gained only 3.52% year-to-date, while the Tema Electrification ETF (VOLT), focused on electrical equipment for data centers, surged 31.68%. XLU holds mostly regulated utilities with slow earnings growth tied to AI power demand, whereas VOLT owns companies supplying physical hardware for data centers, benefiting from faster order recognition. VOLT’s higher fees and volatility contrast with XLU’s steady dividends and low costs. Investors seeking AI infrastructure exposure may consider partially rotating from XLU to VOLT, balancing income and growth potential depending on tax considerations and risk tolerance.