ETF Education Report: Global X U.S. Electrification ETF (ZAP)

What this ETF is trying to do

The Global X U.S. Electrification ETF, trading under the ticker ZAP, is an exchange-traded fund focused on the electrification theme. It holds a variety of companies involved in this sector. According to the provided data, the fund has 46 total holdings.

Top Holdings

The following are some of the largest companies held by this ETF. Please note that this is a partial list:

• Dominion Energy Inc (4.53%)

• Bloom Energy Corp Class A (4.39%)

• Quanta Services Inc (4.28%)

• Ametek Inc (4.05%)

• Consolidated Edison Inc (4.03%)

• Eaton Corp PLC (4.00%)

• Southern Co (4.00%)

• Vistra Corp (4.00%)

• Duke Energy Corp (3.98%)

• American Electric Power Co Inc (3.95%)

Holdings can change over time. This list was updated on October 7, 2026.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price change and any distributions (cash payments) received.

For ZAP, the numbers show:

• Year-to-Date (YTD): The price return is approximately 9.33%, while the total return is approximately 10.83%.

• One-Year: The price return is approximately 5.47%, while the total return is approximately 7.46%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $30.12. The current price is $31.77.

Income and distribution explanation

This ETF pays out cash distributions to investors. The distribution yield is approximately 1.87%. This number describes the cash payments relative to the current ETF price. These distributions usually happen quarterly, and there were 4 payouts in the last 12 months.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry about erosion because it can mean the fund is losing value over time.

For ZAP, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown positive price returns and total returns for both the year-to-date period and the past year.

• The erosion-risk measurements suggest no detected price erosion.

Cons

• Total return data for the three-year period was not supplied.

• The income rating grade is a "C."

Beginner takeaway

When studying ZAP, notice the difference between the share price movement and the total return. The total return is higher than the price return because it includes the cash distributions paid out to shareholders. Always look at both numbers to get a full picture of how an ETF is performing.