Global X Data Center REITs & Digital Infrastructure UCITS ETF (Acc)

Issuer: Global X ETFs

Asset Class: Equity

TER: 50bps

Trading Currency: USD

Pays Income: False

Listing Date: 09 Dec 2021

Ticker: VPN

ISIN: IE00BMH5Y327

The global economy is undergoing a profound digital transformation, leading to an exponential increase in data creation and consumption. Key drivers such as cloud computing, 5G technology, the Internet of Things (IoT), artificial intelligence, and high-definition content streaming all rely on a robust physical foundation. This creates a compelling, long-term demand for the essential infrastructure responsible for storing, processing, and transmitting this vast amount of digital information. Investing in this backbone of the digital world offers a way to participate in this structural growth trend.

This fund offers targeted exposure to companies that own and operate the critical assets of the digital age. The portfolio includes data center REITs, which are essentially the specialized warehouses that house the servers and networking equipment powering the cloud, and digital infrastructure firms that manage cell towers and fiber optic networks. These companies typically generate stable and predictable revenue streams through long-term leases with major technology firms and telecommunication providers. This business model combines the income-oriented characteristics of real estate with the high-growth potential of the technology sector.

By focusing on the 'picks and shovels' of the digital revolution, an investment in this area provides a unique opportunity to gain from the world’s increasing reliance on data. The assets are indispensable for modern connectivity and computation, and the demand for their services is expected to grow regardless of short-term economic cycles. This strategy provides exposure to a powerful, secular growth theme underpinned by the ongoing digitalization of virtually every aspect of life and business.