Investors can consider Vanguard Utilities ETF to benefit from rising demand for electricity from AI.

From Nasdaq: 2025-04-12 03:55:00

Artificial intelligence (AI) is rapidly expanding across various sectors of the economy, creating opportunities for investors. The AI industry is competitive, making it challenging to identify winning stocks. One way to invest in AI is through AI-focused exchange-traded funds (ETFs), which offer diversified exposure to multiple AI companies.

Investing in AI stocks can be risky due to the industry’s early stage of development. Additionally, the winners in AI are uncertain, similar to how Ford and General Motors emerged as leaders in the combustion engine market. AI-focused ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ) provide a portfolio of AI-related stocks in a single investment.

In addition to AI ETFs, electricity providers stand to benefit from the increased demand for power generated by AI computers. Companies like NextEra Energy (NEE) are projected to experience a surge in energy demand due to AI advancements. Investors can consider utility ETFs like Vanguard Utilities ETF (VPU) to gain exposure to companies poised to benefit from AI’s electricity demands. These ETFs offer a collection of utility stocks in one investment with a modest expense ratio.

Vanguard Utilities ETF includes NextEra Energy as its largest holding and offers an attractive dividend yield of 2.9%. As AI continues to grow and demand for electricity rises, investing in utility ETFs like Vanguard Utilities ETF could provide exposure to essential companies supporting AI technology. This long-term growth story aligns with the multiyear potential of AI investments.



Read more at Nasdaq: Artificial Intelligence: Think Outside the AI Box With This Vanguard ETF