Launched on December 17, 2024, the Global X U.S. Electrification ETF (ZAP Quick QuoteZAP - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $375.82 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. ZAP seeks to match the performance of the GLOBAL X U.S. ELECTRIFICATION INDEX before fees and expenses.

The Global X U.S. Electrification Index tracks the performance of U.S. listed companies domiciled in developed markets and involved in electrification.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.5%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.6%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Utilities sector -- about 72.8% of the portfolio. Industrials and Energy round out the top three.

Looking at individual holdings, Quanta Services Inc (PWR) accounts for about 4.98% of total assets, followed by Ametek Inc (AME) and National Grid Plc-sp Adr (NGG).

The top 10 holdings account for about 42.52% of total assets under management.

Performance and Risk

The ETF has gained about 11.86% and is up about 42.85% so far this year and in the past one year (as of 04/07/2026), respectively. ZAP has traded between $22.7 and $33.4 during this last 52-week period.

The ETF has a beta of 0.65 and standard deviation of 16.16% for the trailing three-year period. With about 52 holdings, it effectively diversifies company-specific risk.

Alternatives

Global X U.S. Electrification ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ZAP is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Energy Index Fund ETF Shares (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the State Street Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy Index Fund ETF Shares has $9.89 billion in assets, State Street Energy Select Sector SPDR ETF has $42.57 billion. VDE has an expense ratio of 0.09%, and XLE charges 0.08%.

Bottom Line

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