(VPN) Global X Data Center REITs - Ratings and Ratios

The Global X Data Center REITs & Digital Infrastructure ETF (NASDAQ:VPN) is a non-diversified exchange-traded fund (ETF) that focuses on investing in companies involved in data centers, cellular towers, and digital infrastructure hardware. The fund allocates at least 80% of its total assets, including borrowings for investment purposes, to securities of the Solactive Data Center REITs & Digital Infrastructure Index. This index is specifically designed to track companies that derive significant revenue from digital infrastructure, including data centers, cell towers, and related hardware. The fund may also invest in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) linked to the indexs underlying securities.

Given its focus on digital infrastructure, the ETF is positioned to benefit from the growing demand for cloud computing, 5G networks, and data storage solutions. The inclusion of REITs (Real Estate Investment Trusts) in its portfolio allows investors to gain exposure to the physical assets underpinning the digital economy, such as data centers and cell towers, while also providing potential income through dividends. The funds non-diversified status means it can concentrate its holdings in a smaller number of securities, which may amplify its exposure to sector-specific trends but also increases risk.

From a technical perspective, the ETF has shown a bullish trend in recent weeks, with its 20-day Simple Moving Average (SMA) of 17.71 surpassing its 50-day SMA of 17.11. The 200-day SMA of 16.30 further supports the upward momentum, suggesting long-term strength. The Average True Range (ATR) of 0.42 indicates relatively low volatility, making the ETF a stable choice for risk-averse investors. The average daily trading volume of 262,259 shares reflects moderate liquidity, which is typical for a niche ETF.

From a fundamental standpoint, the ETFs assets under management (AUM) of $228.58 million highlight its established presence in the market. Its focus on digital infrastructure aligns with long-term macroeconomic trends, such as the expansion of 5G networks and the growth of cloud computing. As more businesses migrate to the cloud and demand for data storage and processing increases, the underlying companies in this ETF are well-positioned to benefit.