Wedbush Fund Advisers has launched a new exchange-traded fund aimed at capitalizing on the surging electricity demand from artificial intelligence. The Dan IVES Wedbush AI Power & Infrastructure ETF, trading under the ticker IVEP, provides exposure to companies involved in power generation, fuel supply, grid infrastructure, data centers, equipment, and materials that support AI's physical backbone.
The fund is named after Dan Ives, Wedbush Securities' managing director and global head of technology research, and is built around the firm's “IVES Power 30” research report. That report identifies firms positioned to benefit from the expected explosion in electricity consumption tied to AI workloads. According to Wedbush, U.S. data center electricity consumption could reach approximately 470 terawatt-hours by 2030, roughly 23% above current consensus forecasts.
“As AI adoption accelerates, energy and infrastructure are emerging as critical bottlenecks,” said Cullen Rogers, chief investment officer of Wedbush Fund Advisers, in a statement. “Every dollar spent on AI ultimately requires energy, and the scale of demand is creating meaningful opportunities for the companies enabling that buildout. IVEP provides investors access to this physical backbone of AI.”
This is not Wedbush's first foray into AI-themed ETFs. The firm launched the Dan IVES Wedbush AI Revolution ETF (IVES) in June 2024, which has gained more than 16% since its inception. The new fund extends that strategy by focusing specifically on the energy and infrastructure components that underpin AI expansion.
The launch comes amid broader market interest in energy-related ETFs. The Vanguard Energy Index Fund ETF Shares (VDE), which includes oil, natural gas, and coal stocks, has risen more than 30% year-to-date. Similarly, the State Street Energy Select Sector SPDR ETF (XLE), covering oil, gas, consumable fuels, and energy equipment, has climbed over 29% in the same period. These gains reflect ongoing geopolitical tensions, including conflicts involving the U.S., Israel, and Iran, which have pushed oil prices higher.
Wedbush's move aligns with a growing trend among asset managers to create products targeting AI infrastructure. As noted in a recent BlackRock report, AI and energy shocks are among the key market drivers expected to shape portfolios through 2026. The firm's analysis underscores the potential for energy infrastructure to become a critical investment theme as AI adoption scales.
The ETF market continues to expand rapidly, with global assets nearing $21 trillion, as highlighted in a recent industry overview. This scale is reshaping market infrastructure and strategy, making niche products like IVEP more viable for advisors seeking targeted exposure.
Wedbush's IVEP fund offers advisors a way to tap into the intersection of AI and energy, a theme that some wealth managers are already incorporating into client portfolios. The barbell strategy adopted by ultra-high-net-worth investors, combining safety with high-conviction bets on AI and infrastructure, mirrors the approach that IVEP aims to facilitate for a broader advisory audience.
