AI's Spending Paradox: Hyperscalers Left Behind as the Trade Evolves

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**SPEAKER_2** (1:21)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

**Luke Guerrero** (1:36)
Good afternoon, fellow investors, and welcome to the Tuesday, June 23rd, 2026 edition of Invest Talk.
I'm your host, Luke Guerrero, and I'll be with you over the next hour as we dissect the market today, talk about all the stories that matter, and answer your finance and investment questions. But before we do all that, because it is almost here, because our newest wealth webinar is set for Tuesday, June 30th, that is one week away from noon to one Pacific, I wanted to remind you that if you were interested in being a part of our webinar, Beyond the Yield, How to Invest for Your Income Needs, you're going to need to head over to our website and register. As always, it is free, but you must register to attend at investalk.com. Now, in just a bit, we'll talk about today's market performance and run down those show topics. But why don't we start by tackling our first caller question now? Hi there.

**SPEAKER_4** (2:35)
Just have a quick question about getting some exposure into utilities. I wanted to see the ETF JXI was any good, just for some broad exposure to utilities. I don't know a ton about specific individual utility companies, but I saw that this ETF has exposure to quite a few holdings, and wanted to see if it was a good runner for some utility exposure. Thanks so much. Bye.

**Luke Guerrero** (3:06)
Well, JXI is the iShares Global Utilities ETF. It is a passive ETF that tracks the S&P Global 1200 Utilities Sector Capped Index. It invests in electric, gas, and water utilities across global developed and emerging markets. It is actually the only large cap global utilities ETF available to US retail investors from a major provider. Now, it is, as you would expect, pretty dominated by its top holdings. Its top 10 make up about 43 percent of its total assets. NextEra, Iberdrola, Southern Company, Duke Energy, Constellation, those are the top five. They make up roughly 35, 36 percent of the fund itself.
And in terms of expenses, I mean, it's about 39 basis points, which for a fund that is investing internationally and in emerging markets as well, isn't really all that expensive.
Compared to its peers, though, it is a bit more expensive. XLU, which is the Spider US Utility, so only US, not International Emerging Exposure. It's probably the largest utilities fund. I mean, that's much cheaper. That's nine basis points. But overall, if you're looking for global diversification, because 55% of this is US and 35% of it is European utilities, and essentially what you're doing then versus the normal US only index is you're hedging against AI data center power demand in both the US and in Europe, which are two simultaneous secular tailwinds. Also, maybe you think the dollar is a bit weaker or is going to be a bit weaker. That would amplify European returns. And you're doing it for about a 2.5% dividend yield is where it currently sits. I think overall it is a well constructed global utility wrapper for investors who want to own this AI power demand story and the European energy transition story simultaneously. Morningstar gave it a bronze. I mean, it's up almost 19% over the past 52 weeks. And you do get genuine geographic and market diversification all for a cost of about 40 basis points. Frankly, I think if you want that European exposure and you think the dollar weakness is going to be a tailwind and that's going to help it along, this is a perfectly good way to go about getting that global utility exposure. That is JXI, the iShares Global Utilities ETF. Thanks for the call. Well, we had another great show yesterday. We looked into how what is going on in 2026 looks a lot like 2022 And so we provided investors with a checklist to invest for the rest of the year. We also answered a listener question on Ethereum.