Is Investing in the Global X U.S. Electrification ETF (ZAP) a Good Idea?
ETF Overview: The Global X U.S. Electrification ETF (ZAP), launched on December 17, 2024, aims to provide broad exposure to the Energy - Broad segment of the equity market, with assets over $200 million and an expense ratio of 0.5%.
Performance and Holdings: ZAP has gained approximately 23.55% this year, with a heavy allocation of 76.2% in the Utilities sector and 43.46% of total assets in its top 10 holdings, making it a strong option for investors seeking exposure to energy ETFs.
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ETF Overview: The Global X U.S. Electrification ETF (ZAP), launched on December 17, 2024, aims to provide broad exposure to the Energy - Broad segment of the equity market, with assets over $200 million and an expense ratio of 0.5%.
Performance and Holdings: ZAP has gained approximately 23.55% this year, with a heavy allocation of 76.2% in the Utilities sector and 43.46% of total assets in its top 10 holdings, making it a strong option for investors seeking exposure to energy ETFs.
Vistra Energy Stock Performance: Vistra Energy (VST) stock has surged 78% in six months due to strong financials and strategic initiatives, with investors considering ETFs like Spear Alpha ETF (SPRX) and Global X U.S. Electrification ETF (ZAP) for exposure.
ETF Overview: The SPRX ETF focuses on industrial technology trends and has a 15.6% return over six months, while the ZAP ETF targets companies benefiting from increased electricity demand, yielding a 4.69% return; both provide indirect exposure to VST stock.

Fourth Quarter Results: Xcel Energy reported fourth-quarter revenue of $3.12 billion and adjusted EPS of 81 cents, both missing consensus estimates. For 2024, ongoing EPS is projected at $3.50, reflecting increased infrastructure investments despite higher expenses.
Future Outlook: The company reiterated its FY25 adjusted EPS guidance of $3.75 - $3.85, while CEO Bob Frenzel emphasized plans to enhance the energy grid to meet rising customer demand and improve service amid challenging conditions.

Market Analysis: This week's ETF Wrap discusses the risks associated with narrow breadth in the S&P 500, highlighting the struggles of U.S. stocks following the Federal Reserve's recent policy meeting.
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