Tema ETFs has introduced the PSOX fund, marking its entry into niche thematic investing with the first exchange-traded fund focused on multi-layer ceramic capacitors and power semiconductors, key components driven by rising AI power demands.
Tema ETFs has reworked one of its thematic products into what it says is the first exchange-traded fund built around multi-layer ceramic capacitors and power semiconductors, two components that are becoming more important as artificial intelligence data centres consume ever more electricity. The firm said the fund, now called the Tema MLCC & PowerSemi ETF and trading under the ticker PSOX, began its latest life on 17 August and is intended to give investors access to a supply chain that is often concentrated in Asia and difficult to buy directly from the United States.
The timing reflects a wider investment theme around the power demands of AI infrastructure. Tema cites research suggesting MLCC demand could rise fivefold by 2027, while a shift towards 800V direct current architectures could push semiconductor content per rack up more than elevenfold. In practical terms, MLCCs help regulate and stabilise power, while power semiconductors convert and control electricity, making both central to the electrical backbone of AI servers and high-density computing systems.
According to Yahoo Finance’s summary of the launch, the fund is listed on Cboe BZX, carries an expense ratio of 0.75% and names Infineon Technologies, Yageo, Delta Electronics, Murata Manufacturing and Taiyo Yuden among its largest holdings. Robinhood’s fund page said the ETF held 21 companies as of 24 August, with technology making up the overwhelming majority of assets, underscoring how concentrated the strategy is in a narrow slice of the market.
Tema said the fund builds on its exclusive collaboration with SemiAnalysis, a semiconductor and AI infrastructure research firm founded by Dylan Patel. The company has increasingly leaned into niche thematic strategies: its earlier launches included funds tied to reshoring, luxury and market concentration, while a separate announcement said the power semiconductor strategy was being renamed to better reflect its holdings and objective without altering its fee structure or management approach. As with any sector-focused ETF, investors are taking on the risks of a concentrated bet on a fast-moving corner of the technology market.
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