Tema Launches World’s First Electrification ETF ($VOLT)

December 04, 2024 at 11:46 AM EST

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Tema ETFs (“Tema”) is excited to announce the launch of the Tema Electrification ETF (VOLT), on Nasdaq. VOLT is the first ETF globally seeking to provide long-term growth by investing in companies that benefit from the electrification megacycle. AI, mobility, digitization, and reindustrialization are all accelerating power demand for the first time in decades, unlocking trillions of dollars in investment across the electrification value chain. The VOLT portfolio will be managed by Chris Semenuk, who has 25 years’ experience, managing $5bn in global equities at TIAA. Chris also manages the Tema American Reshoring ETF (RSHO), which since inception has delivered +66.26% return, ahead of the S&P 500 (+41.46%) and S&P 400 (+49.82%).

“The VOLT ETF is the latest in our range of innovative first-mover ETF launches, providing investors with professionally managed portfolio building blocks that access some of tomorrow’s most relevant yet least explored opportunities,” said Maurits Pot, Chief Executive Officer and Founder of Tema. “For the first time in decades, accelerating power demand is forecast to outstrip supply, creating an investment cycle akin to the days of Thomas Edison. This structural shift in power demand will transform the entire electrification value chain. Investing behind this opportunity requires a risk managed approach managed by experienced investment talent. VOLT is a durable implementation solution combining precision, conviction and investment expertise.”

Electrification is a broad term covering generation, storage, transmission, and distribution, as well as end use applications and services. Electricity demand is set to outstrip supply as soon as 2025, creating an estimated 40 GW capacity supply gap by 2030, equivalent to the output of 40 new nuclear plants. To meet increased demand Goldman Sachs estimates nearly $7 trillion of investment is required.

The electrification trend is at the nexus of secular growth drivers. AI data centers, for example, use seven times more power than traditional data centers and are forcing leading cloud companies to co-locate generation capacity. Nuclear energy, a stable and clean source of power, is experiencing a resurgence, from recommissioning of old plants like Microsoft’s deal for Three Mile Island to new technologies like small scale modular reactors (SMR). Reshoring and reindustrialization, especially under the incoming administration, are creating a strong tailwind for electrification end-use applications. Schneider Electric estimates suggest 80% of industrial energy demand will be supplied by electricity by 2050.

“These demand drivers are exposing a US grid that is 40 years old and in need of modernization, ushering in the electrification investment megacycle,” said Chris Semenuk, VOLT portfolio manager. “Meeting the oncoming wave of electricity demand will require a rapid increase in capital spending on both new generation and existing grid capacity. VOLT companies will span the entire value chain, providing investors with broad exposure to electrification verticals, while focusing on high quality companies that are well positioned to take advantage of this trend.”

For more information, please visit www.temaetfs.com/VOLT

About Tema ETFs

Tema ETFs . is an investment manager founded in 2023 to empower investors with innovative portfolio solutions accessing today’s most pressing and durable investment opportunities. Tema's active ETF strategies are managed by experienced investment professionals. For more information, visit www.temaetfs.com

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the funds' full or summary prospectuses, which may be obtained at temaetfs.com/VOLT. Read the prospectus carefully before investing. Investing involves risk, including the possible loss of principal.

Tema Global Limited serves as the investment adviser to Tema Electrification ETF. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema Global Limited.