AIPO ETF Unveils First-of-Its-Kind AI and Power Infrastructure Strategy

Defiance ETFs has formally introduced the Defiance AI & Power Infrastructure ETF (Nasdaq: AIPO), marking a significant milestone for thematic exchange-traded funds. This passive investment vehicle grants retail investors direct access to U.S.-listed enterprises operating at the intersection of artificial intelligence and critical energy infrastructure—a convergence increasingly shaping global markets.

The Energy-AI Nexus: Why Now?

The artificial intelligence revolution is creating acute energy pressures worldwide. As data centers expand and computing demands surge, the power grid infrastructure supporting these operations becomes a critical economic bottleneck. AIPO targets companies deriving at least 50% of revenue from AI-adjacent sectors and energy solutions, including nuclear power generation, electrical grid management, semiconductor hardware, and data center operations.

This thematic focus recognizes an underserved investment opportunity: firms positioned to capture growth across decentralized energy technologies, utility modernization, AI-specific computing components, and next-generation infrastructure development. AIPO tracks the MarketVector™ US Listed AI and Power Infrastructure Index, providing passive exposure without requiring margin accounts—a distinct advantage for retail market participants.

Portfolio Construction and Key Features

The ETF concentrates on companies building foundational systems for AI deployment. Rather than investing in AI software or applications, AIPO emphasizes physical infrastructure: energy generation and storage systems, electrical equipment manufacturers, construction and engineering services supporting grid upgrades, data center operators, and semiconductor producers specializing in AI computing hardware.

This targeted approach reduces sector fragmentation while amplifying exposure to high-conviction themes. Investors gain diversified access to a portfolio constructed around industries most likely to benefit from sustained AI infrastructure investments.

Risk Considerations for Investors

Prospective shareholders should carefully evaluate several risk factors before committing capital:

• Market and index tracking risk: General economic downturns or deviations between the fund’s performance and its underlying index may occur due to fees, expenses, and operational factors.
• Sector concentration: Heavy allocation to technology, utilities, and energy sectors increases vulnerability to industry-specific disruptions, regulatory changes, or commodity price volatility.
• Technology evolution risk: AI and semiconductor companies face rapid innovation cycles, intense competitive pressures, and evolving regulatory frameworks that could impact valuations.
• New fund status: AIPO carries inherent limitations as a newly launched vehicle—investors cannot reference historical performance data to assess management effectiveness or fund behavior across different market cycles.
• Passive management constraints: The fund maintains index-tracking discipline and will not adopt defensive positioning during market downturns.
• Liquidity considerations: Shares trade at market prices rather than net asset value, and underlying holdings may experience periodic liquidity constraints.

Investment Framework

AIPO represents a forward-looking vehicle for investors seeking conviction-based exposure to infrastructure powering the next generation of computing. The fund is designed for sophisticated retail participants comfortable with thematic sector concentration and willing to actively monitor portfolio movements.

Defiance ETFs continues positioning itself as an innovation leader in thematic and leveraged fund structures, addressing demand from investors seeking alternatives to traditional broad-market exposure or individual stock selection.

For prospective investors, detailed information including prospectuses, risk factors, and fund objectives is available through Defiance ETFs. The product is not universally suitable and requires assessment against individual risk tolerance and investment objectives.