If we learned anything in the six months since the Tortoise AI Infrastructure ETF (TCAI) launch, it is that AI is no longer a future technology. AI is here, actively reshaping how businesses operate and compete. AI compresses time, expands productivity, and reshapes competitive advantage. How much more are you using AI versus six months ago?!
- Companies that adopt it early gain structural advantages. Those that delay fall behind.
- AI is becoming a core operating requirement for modernized business.
- From research and customer engagement to logistics and capital allocation, AI is becoming embedded in daily workflows across industries.
From Concept to Execution
We launched TCAI in response to the fundamental disconnect in the AI investment landscape. While adoption was accelerating rapidly, market exposure was becoming increasingly concentrated in software and semiconductor companies. Studying the market through our energy and infrastructure expertise, we identified that the physical and digital infrastructure supporting AI, power, data centers, cooling, and connectivity was receiving limited investor attention.
This imbalance created both concentration risk and a compelling structural opportunity.
TCAI was constructed as an innovative actively managed AI Infrastructure ETF and invests across the AI value chain, from energy, to data centers, to the digital infrastructure inside the data centers. Its flexible mandate is designed to adapt as technologies, business models, and market leadership evolve.
Performance and Validation
Past performance is no guarantee of future results.
Since launch, TCAI has delivered strong performance relative to peer broad benchmarks and AI-focused ETF peers. Active management and thematic positioning have been key contributors. Market dynamics can rapidly shift, and momentum has unfolded in multiple segments across the AI infrastructure value chain.
In late 2025, the power segment led performance, driven by bitcoin miners, as data center power shortages drove a re-rating of select energy-intensive infrastructure assets.
Moving into 2026, leadership has rotated into the data center stack and enabling hardware infrastructure, driven by rising demand for storage, compute capacity, and onshore manufacturing. Examples include positions in companies supporting storage and data center hardware, reinforcing TCAI’s ability to capture shifting leadership across power, data centers, and physical infrastructure as AI adoption scales.
In terms of valuation, TCAI trades at a lower P/E, EV/EBITDA, and PEG ratios compared to many relevant peer indices. Despite strong performance, this valuation discount has persisted.
Who TCAI is Designed For
TCAI is designed for investors seeking long-term AI exposure without excessive concentration, valuation risk, or narrow technology bets. It is built for portfolio allocators who recognize a familiar pattern: investors often hesitate during early stages of major innovations, miss years of compounding, and later re-enter near peaks. This dynamic has repeated across cycles, the internet, phone, and yes, even the energy infrastructure shale cycle!
TCAI is designed to help investors stay constructively positioned as AI adoption scales, rather than reacting to short-term market noise.
Looking Ahead
There is no AI without infrastructure. As shown in the chart below, hyperscalers continue to increase capital spending tied to AI. From 2025 to 2026, hyperscaler capital expenditures (CapEx) are projected to increase by 73%. We expect earnings growth for many companies in TCAI’s portfolio to approximate this capital spending growth over time. To put this into context, the 2026 $695 billion in Al annual spending is set to be greater than the 8 of the S&P 500 sectors combined. Put differently, hyperscaler CapEx alone is larger than the combined 2026 CapEx of Information Technology, Consumer Discretionary, Communication Services, Financials, Health Care, Energy, Utilities, and Real Estate (excluding hyperscalers).
Artificial intelligence will continue to reshape the global economy, driving sustained investment in digital infrastructure, energy infrastructure, and data centers. As this unfolds, leadership will shift, valuations will move, and capital will rotate across the ecosystem, creating both opportunity and volatility.
TCAI is built to adapt as conditions change: rotating exposure, managing concentration, and maintaining valuation discipline as new leaders emerge. Our goal is straightforward: help investors participate in AI’s long-term growth while remaining disciplined through every phase of the cycle.
Important Information
The performance data quoted represents past performance. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. NAV prices are used to calculate market price performance prior to the date when the fund first traded on the New York Stock Exchange. Market performance is determined using the bid/ask midpoint at 4:00pm Eastern time, when the NAV is typically calculated. Market performance does not represent the returns you would receive if you traded shares at other times. For the fund’s most recent month end performance, please call (855) 994-4437.
Click here for TCAI’s full holdings.
Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. This communication contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical fact, included herein are “forward-looking statements.” Although Tortoise Capital believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual events could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements. This communication reflects our views and opinions as of the date herein, which are subject to change at any time based on market and other conditions. We disclaim any responsibility to update these views. These views should not be relied on as investment advice or an indication of trading intention. Discussion or analysis of any specific company-related news or investment sectors are meant primarily as a result of recent newsworthy events surrounding those companies or by way of providing updates on certain sectors of the market. Tortoise Capital, through its family of registered investment advisers, does provide investment advice to Tortoise-related funds and others that include investment into those sectors or companies discussed in this communication. As a result, Tortoise Capital does stand to beneficially profit from any rise in value of the sectors broadly discussed, including individual companies contained within.
Tortoise Capital Advisors, LLC is the advisor to the Tortoise AI Infrastructure ETF.
Before investing in the funds, investors should consider their investment goals, time horizons and risk tolerance. The funds’ investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectuses and the summary prospectuses (click here) contain this and other important information about the funds. Copies of the funds’ prospectus may be obtained by calling 855-994-4437 or by emailing info@tortoisecapital.com. Read it carefully before investing.
As stated in the Prospectus, the total annual operating expenses are 0.65%. The adviser has agreed to pay all expenses incurred by the fund except for the advisory fee, interest, taxes, brokerage expenses and other fees, charges, taxes, levies or expenses (such as stamp taxes) incurred in connection with the execution of portfolio transactions or in connection with creation and redemption transactions.
Investing involves risk. Principal loss is possible. Because the fund is “non-diversified” and may invest a greater percentage of its assets in the securities of a single issuer, a decline in the value of an investment in a single issuer could cause the fund’s overall value to decline to a greater degree than if the fund held a more diversified portfolio. The fund’s strategy of emphasizing investments in AI infrastructure companies means that the performance of the fund will be closely tied to the performance of one or more industries that are expected to benefit from the growth of AI-capable data centers and related technology and energy infrastructure. Investing in companies that are expected to benefit from the same macro theme means that some of the fund’s investments may be similarly affected by certain market, economic, political, or social developments. Companies in the energy infrastructure sector are subject to many risks that can negatively impact the revenues and viability of companies in this sector, including, but not limited to risks associated with companies owning and/or operating pipelines, gathering and processing assets, power infrastructure, propane assets, as well as capital markets, terrorism, natural disasters, climate change, operating, regulatory, environmental, supply and demand, and price volatility risks. Companies in the technology infrastructure sector are subject to many risks that can negatively impact the revenues and viability of companies in this sector, including, but not limited to risks associated with emerging technology that renders existing products or services obsolete, reliance on outdated technology, intellectual property theft, supply chain disruption, vulnerabilities to third-party vendors and suppliers, business interruption, difficulty in retaining skilled talent, and regulatory compliance. Companies in the industrial sector face a variety of risks, including commodity price volatility, supply chain disruptions, potential obsolescence of technologies, economic downturns, and increasing competition.
Investment advisers, including the Adviser, must rely in part on digital and network technologies (collectively “cyber networks”) to conduct their businesses. Derivatives include instruments and contracts that are based on and valued in relation to one or more underlying securities, financial benchmarks, indices, or other reference obligations or measures of value. If the fund writes a covered call option, during the option’s life the fund gives up the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retains the risk of loss should the price of the underlying security decline. Investments in securities of foreign companies involve risks not ordinarily associated with investments in securities and instruments of U.S. issuers, including risks relating to political, social and economic developments abroad, differences between U.S. and foreign regulatory and accounting requirements, tax risks, and market practices, as well as fluctuations in foreign currencies.
The fund may be exposed to liquidity risk when trading volume, lack of a market maker, or legal restrictions impair the fund’s ability to sell particular securities or close call option positions at an advantageous price or in a timely manner. Illiquid investments may include restricted securities that cannot be sold immediately because of statutory and contractual restrictions on resale. Mid-cap and small-cap companies may not have the management experience, financial resources, product or business diversification and competitive strengths of large cap companies.
Shares of exchange-traded funds (ETFs) are not individually redeemable and owners of the shares may acquire those shares from the ETF and tender those shares for redemption to the ETF in Creation Units only, see the ETF prospectus for additional information regarding Creation Units. Investors may purchase or sell ETF shares throughout the day through any brokerage account, which will result in typical brokerage commissions.
There is no guarantee the fund will pay distributions in the future and distributions, if any, may be less than the current distribution.
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NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE
The S&P 500® Index is an unmanaged, market-value weighted index of stocks that is widely regarded as the standard for measuring large-cap U.S. stock market performance. Nasdaq-100 Index is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. The Russell 3000 Index is a market-capitalization weighted benchmark that measures the performance of the largest 3,000 US companies designed to represent approximately 98% of the investable. The Solactive Wedbush Artificial Intelligence Index represents U.S.-listed equities identified as significant enablers or adopters of artificial intelligence technologies through their strategic focus, partnerships, innovation, product development, or integration of AI into their operations.
The EV/EBITDA ratio (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization) is a valuation metric used to determine the fair market value of a company by comparing its total valuation (including debt) to its operating cash flow. The price-to-earnings (P/E) ratio compares a company’s share price with its earnings per share (EPS). The price/earnings-to-growth (PEG) ratio is a valuation metric that adjusts traditional earnings multiples by factoring in a company’s expected growth rate.