Defiance adds AI and power infrastructure ETF to European rollout

Defiance has extended its partnership with white-label issuer HANetf to three products in Europe with the launch of an AI and power infrastructure ETF.

The Defiance AI & Power Infrastructure UCITS ETF (AIPO) is listed on Deutsche Börse and Borsa Italiana with a total expense ratio (TER) of 0.69%.

AIPO tracks the MarketVector US Listed AI & Power Infrastructure index which captures companies exposed to electrical grid systems and AI infrastructure.

This can be through nuclear and other decentralised energy technologies, electric equipment and related engineering and construction services, electrical utilities, data centre operations and AI-related computing hardware.

To be included, firms must derive at least 50% of their revenue from areas such as as power generation and grid equipment, infrastructure construction, utilities, data centres or AI-focused semiconductors, with a lower 25% threshold allowed for existing constituents.

The methodology also excludes companies with only indirect exposure, such as general semiconductors or consumer technologies, unless their revenues are clearly tied to AI or infrastructure use cases.

Using a tiered weighting approach, the index allocates 50% of the basket to power generation and grid equipment, followed by data centres and AI hardware (20%), construction and engineering (15%) and utilities and power producers (15%).

HANetf also announced Defiance will partner with the white-labeller on its recently launched Drone UCITS ETF (DRON) and Ukraine Reconstruction UCITS ETF (UKRN).

AIPO is launching against a backdrop of strong investor interest in infrastructure ETFs, with the segment attracting $1.1bn inflows across the continent this year, according to data from ETFbook.