Value ETF Outpaces Growth by 18 Points as AI Spurs Infrastructure Capex
Goldman Sachs analysts highlight that AI-driven capital expenditure on data centers, power grids and industrial equipment is funneling billions into historically underinvested value sectors. The iShares Russell 1000 Value ETF outperformed its growth counterpart by 18 percentage points over the past three months.
1. Market Shift in AI Spending
Major technology firms have ramped AI infrastructure spending on data centers, power grids, industrial equipment and construction, reversing a decade-long drought in capital deployment among value-oriented industries.
2. Value ETF Performance
Over the past three months, the iShares Russell 1000 Value ETF outpaced its growth counterpart by 18 percentage points, marking a sharp rotation into sectors tied to physical assets and data center buildout.
3. Investment Implications
Renewed capex in infrastructure may transform legacy ‘value traps’ into value creators by boosting cash flows and enabling higher dividends and buybacks, potentially reshaping portfolio allocations away from uniform mega-cap growth exposure.