How do exchange-traded-funds (ETF) focused on data centers, an arguably hot theme, perform? To investigate, we consider four such ETFs, all currently available, as follows:
We use Invesco QQQ Trust (QQQ) as a benchmark, assuming investors look at data center stocks as a way to beat other technology stocks. We focus on monthly return statistics, along with compound annual growth rates (CAGR) and maximum drawdowns (MaxDD). Using monthly total returns for the four data center ETFs and QQQ as available through January 2026, we find that:
The following table summarizes sample periods and performance statistics based on monthly and full-sample data for the four data center ETFs and QQQ over available sample periods. Notable points are:
- All four data center ETFs exhibit moderately high monthly return correlations with QQQ.
- Only one of four has a higher average monthly return than QQQ.
- All have higher monthly volatilities than QQQ.
- Only the newest of the four has a (barely) higher monthly reward-to-risk ratio (average monthly return divided by standard deviation of monthly returns) than QQQ.
- One (TRFK, the newest with a very short sample) has a higher CAGR than QQQ.
- All four have slightly to moderately deeper MaxDDs than QQQ based on monthly measurements over available sample periods.
For perspective, we look at cumulative performance of the average data center ETF.
The following chart compares gross cumulative values of $1.00 initial investments in the average (equal-weighted, EW) data center ETF, rebalanced monthly with ETFs added as they become available, and QQQ. Results suggest that data center ETFs overall are less attractive than QQQ, with CAGR 5.8% versus 13.1% and MaxDD -71% versus -50%.
However, only IDGT exists for much of the sample period. What about recent performance?
The final chart compares gross cumulative values of $1.00 initial investments in the average data center ETF since all are available in June 2022 and QQQ. Results still suggest that data center ETFs overall are less attractive than QQQ.
In summary, available evidence is that data center ETFs are less attractive than the broader technology exposure offered by QQQ.
Plans to build many more data centers based on artificial intelligence platform demands could change niche dynamics.
Cautions regarding findings include:
- Most available sample periods are short or very short, especially in terms of variety of economic/market conditions, undermining confidence in findings.
- Comparing data center ETFs to each other based on above data is problematic because sample periods differ.