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

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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 11, placing it in bottom 31%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $465.49 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.66%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Utilities sector -- about 71.6% of the portfolio. Industrials and Energy round out the top three.

Looking at individual holdings, Dominion Energy Inc (D) accounts for about 4.63% of total assets, followed by Quanta Services Inc (PWR) and Consolidated Edison Inc (ED).

The top 10 holdings account for about 41.03% of total assets under management.

Performance and Risk

Year-to-date, the Global X U.S. Electrification ETF has added about 13.2% so far, and it's up approximately 16.88% over the last 12 months (as of 08/10/2026). ZAP has traded between $27.5 and $35 in this past 52-week period.

The ETF has a beta of 0.57 and standard deviation of 16.53% for the trailing three-year period. With about 47 holdings, it has more concentrated exposure than peers.

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 $9.83 billion in assets, State Street Energy Select Sector SPDR ETF has $37.57 billion. VDE has an expense ratio of 0.09%, and XLE charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Get it now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Global X U.S. Electrification ETF (ZAP): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research