Three investment opportunities driving markets right now

AI, geopolitics, and interest rates. Three themes that have dominated market conversations and investment narratives over the past several years.  And while those themes remain front and center, something bigger is taking shape beneath the surface. 

Several trends that started as hype-driven stories or tactical, cyclical trades are quickly evolving into long-term structural shifts, reshaping industries and potentially transforming the investment landscape for years to come. 

The AI trade is expanding beyond mega-cap tech names to the infrastructure powering it. AI’s rapid growth is also creating ripple effects across commodity markets as demand for raw materials and electrification skyrockets. At the same time, the interest rate and volatility backdrop is pushing more investors to rethink how they’re generating income.

At Global X, we focus on the long-term structural shifts shaping the global economy and the potential investment opportunities alongside them. Here are three of our highest conviction opportunities. 

The infrastructure behind the AI buildout

For several years, AI hype was driven by a handful of mega-cap technology stocks. For many investors, AI exposure meant owning those market-leading names. But that’s changing. 

What’s generating attention now is the broader infrastructure buildout that’s needed to support AI. It’s the physical and digital infrastructure required to power the industry -- think semiconductors, networking equipment, memory chips, data centers, and even power systems.

The numbers behind this are massive. Amazon, Alphabet, Meta, Microsoft -- the world’s four largest hyperscalers -- are expected to spend up to $725 billion this year, with much of that going towards AI infrastructure, as demand far outpaces supply¹. And you can already see the imbalance across the industry. Data center vacancy rates in many major U.S. markets have dropped below 1%², while high-bandwidth memory suppliers are reportedly sold out well into 2026³.  

That supply crunch is pushing some investors to look beyond well-known AI names towards the broader ecosystem supporting the buildout, a strategy that’s sometimes called the "picks and shovels" trade. The idea is to focus on the companies and infrastructure that the entire industry depends on, regardless of which AI players come out on top.

For investors looking to explore this space, ETFs can offer a way to access various parts of the AI ecosystem. At Global X, we’ve seen investors use strategies spanning cloud computing, software, semiconductors, and services through AIQ, as well as more infrastructure focused approaches tied to chips and data center capacity through strategies like CHPX and DTCR.

The commodity story that deserves a second look

For years commodities were largely viewed through one lens, an inflation hedge tied to economic cycles. But that narrative is starting to evolve as a new set of forces reshapes demand.

Geopolitics is becoming a more dominant driver of commodity markets as supply chain disruptions, trade tensions, and a push for resource independence turn commodities like copper and uranium into strategic assets. 

At the same time, the race to modernize power grids and build out AI capabilities further accelerate the skyrocketing demand for critical materials. Building and powering AI at scale requires massive amounts of physical materials and energy. Copper is critical for data center construction, while uranium and nuclear energy support rising electricity demand.   

Together, these forces are creating long-term demand tailwinds across commodities, driving investor interest in areas like copper miners (COPX), and in uranium and nuclear energy (URA).

Income is back in focus

While the first two themes are about growth opportunities tied to the AI infrastructure buildout, this third theme is more directly tied to the interest rate backdrop and the growing importance of income generation in investor portfolios.

Sticky inflation and uncertainty around the Federal Reserve’s path forward have created a more volatile market environment at times.  And higher market volatility can potentially increase options premiums, making options strategies like covered calls more attractive from an income perspective. 

The investment case, though, varies by investor. Some are prioritizing high levels of current income and want to reduce their exposure to market swings, while others want more exposure to potential market upside while still generating income. There's no one-size-fits-all approach. Rather, it ultimately depends on your individual goals and income needs.

Global X has a range of strategies in this space. QYLD and XYLD are more traditional covered call approaches, while EDGQ and EDGX are our actively managed strategies. EDGQ and EDGX are designed to adapt option coverage as market conditions change, seeking to achieve a target annualized distribution rate while maintaining a degree of upside participation.

Positioning for what’s next

None of these themes are brand new, but they are entering a new phase. The AI buildout is moving from hype to execution. Commodity demand tied to geopolitics, electrification and AI may still be underappreciated by many investors. And the case income is strong as the interest rate and volatility backdrop continue to evolve. 

While markets will likely continue to be driven by short-term headlines, some of the biggest investment opportunities emerge from long-term structural shifts. The question for investors is no longer whether these forces matter, it’s whether their portfolios are best positioned to capitalize on them.

¹ Amazon, Alphabet, Meta, Microsoft. (2026, April 29). Q1 2026 Earnings Releases. Retrieved from company investor relations pages: investor.aboutamazon.com, abc.xyz/investor, investor.atmeta.com, microsoft.com/investor

² Avison Young. (2025). U.S. Data Center Update. Retrieved from https://www.avisonyoung.us/us-data-center-market-overview

³ Introl. (2026, January 3). The AI Memory Supercycle: How HBM Became AI's Most Critical Bottleneck. Retrieved from https://introl.com/blog/ai-memory-supercycle-hbm-2026

Glossary

Capital Expenditures (CapEx): Money a company spends on long-term investments such as buildings, equipment, technology infrastructure, or other assets intended to support future growth.

Hyperscaler: A large technology company that operates massive cloud computing and data center infrastructure to support services used by businesses and consumers around the world.

Options Premium: The amount of income received by an investor when selling an options contract.

Covered Call Strategy: An options strategy in which an investor owns a stock or portfolio of stocks and sells call options on those holdings in an effort to generate additional income. A covered call strategy can limit participation in market gains and does not eliminate the risk of loss.

Option Coverage: The portion of a portfolio on which options are written. A higher level of option coverage may generate more income but can reduce participation in rising markets.

Distribution Rate: The annual rate an investor would receive if the most recent fund distribution remained the same going forward. The rate represents a single distribution from the fund and does not represent total return of the fund. The distribution rate is calculated by annualizing the most recent distribution and dividing by the most recent fund NAV.

Important Information

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular. Some of the statements contained in this material may be forward-looking and contain certain risks and uncertainties.

Investing involves risk, including possible loss of principal. EDGQ and EDGX are subject to certain principal risks, including: Active Management Risk; Derivatives Risk; Depositary Receipts Risk; Equity Securities Risk; ETF Investment Risk; Large-Capitalization Companies Risk; Covered Call Option Writing Risk; Cybersecurity Risk; FLEX Options Risk; Risks Related to Investing in the Information Technology Sector; Risks Related to Investing in the Semiconductors and Semiconductor Equipment Industry; Foreign Securities Risk; Risk of Investing in Developed Markets and the United States; Issuer Risk; Market Risk; New Fund Risk; Non-Diversification Risk; Operational Risk; Options Premium Tax Risk; Risks Associated with Exchange-Traded Funds, including Authorized Participants Concentration Risk, Large Shareholder Risk, Listing Standards Risk, and Market Trading Risks and Premium/Discount Risks; Trading Halt Risk; Turnover Risk; and Valuation Risk.

There is no assurance the Funds will achieve their target annualized distribution rates. The actual distributions the Funds make over a one-year period may deviate from its intended target annualized distribution rate. Concentration in a particular industry or sector will subject EDGQ and EDGX to loss due to adverse occurrences that may affect that industry or sector. Investors in EDGQ and EDGX should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses.

QYLD, XYLD, EDGQ and EDGX engage in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. A covered call option involves holding a long position in a particular asset and writing a call option on that same asset with the goal of realizing additional income from the option premium. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying index above the exercise price, but continues to bear the risk of a decline in the index. A liquid market may not exist for options held by the fund. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below the indices current market price.

International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.

Narrowly focused investments may be subject to higher volatility. There are additional risks associated with investing in commodities and their respective  mining industries.  

CHPX, DTCR, QYLD, EDGQ, EDGX, COPX, and URA are non-diversified.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ summary and full prospectuses, which may be obtained at www.globalxetfs.com. Read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Nasdaq, nor does Nasdaq make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Nasdaq.