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RACK is a passively managed fund that invests in US-listed companies in the broad ecosystem of modern data centers. It considers companies generating significant revenues from cloud networking, data center equipment, storage, real estate, fabless and quantum computing, nuclear energy, and power supply chain sectors. Targeting 98% of the companies from the eligible universe, the fund sets minimum component thresholds per category, selected by market cap. Holdings are tier-weighted in proportion to all other components in the same category: 35% Data Center Solutions, 25% Power Bridge, 20%…
Is RACK's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
VanEck Data Center Supply Chain ETF is a concentrated AI infrastructure play, best suited for AI bulls seeking direct exposure to sector growth. Global X Data Center & Digital Infrastructure ETF offers broader digital infrastructure exposure, appealing to AI skeptics who still want some AI upside. RACK features a lower portfolio PE (21) and higher cash flow growth (~20%) versus DTCR, which has a PE of 24 and slower growth metrics.
Though a handful of companies have emerged as frequent topics of conversation in AI, investors would do well to remember that the industry is still very much in a developmental phase. It's possible, and even likely, that the list of leading AI companies in the coming years will differ from today's.
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