AdvisorShares Marks One-Year Anniversary of the First ETF Dedicated to the HVAC Industry

Rhea-AI Summary

AdvisorShares (Ticker: HVAC) marks the one-year anniversary of the AdvisorShares HVAC and Industrials ETF, launched February 3, 2025. Year-to-date through Jan 31, 2026 HVAC returned 10.47% versus 1.37% for the S&P 500. Since inception through Dec 31, 2025, HVAC returned 24.13% vs 15.56% for the S&P 500. The fund targets companies across the HVAC ecosystem tied to data center cooling demand; research cites data center electricity use rising from 147 TWh (2023) to 600+ TWh (2030), and cooling representing ~40% of data center energy use.

Positive

• Year-to-date return of 10.47% through January 31, 2026
• Since-inception return of 24.13% through December 31, 2025
• Targeted exposure to HVAC firms benefiting from projected data center electricity growth to 600+ TWh by 2030

Negative

• Concentrated, actively managed HVAC exposure may increase volatility versus broad indices
• HVAC companies face regulatory, compliance, and operational risks that could affect revenues

News Market Reaction – HVAC

-4.36%

-4.36% Session close to close

In the Feb 4 session, HVAC declined 4.36%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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The AdvisorShares HVAC and Industrials ETF (Ticker: HVAC) has outperformed the S&P 500 Index since inception as demand for HVAC infrastructure expands across data centers, commercial construction and residential markets.

BETHESDA, Md., Feb. 4, 2026 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today marks the one-year anniversary of the AdvisorShares HVAC and Industrials ETF (Ticker: HVAC). HVAC launched on February 3, 2025, as the first and only ETF dedicated to the heating, ventilation and air conditioning industry.

"Cooling infrastructure has become as essential to the AI economy as the chips themselves."

Year-to-date, through January 31, 2026, HVAC has returned 10.47% versus 1.37% for the S&P 500 Index. Since inception through December 31, 2025, HVAC returned 24.13% compared to 15.56% for the S&P 500 Index over the same period.*

"Cooling infrastructure has become as essential to the AI economy as the chips themselves—data centers cannot operate without it," said Noah Hamman, CEO of AdvisorShares. "HVAC companies represent the picks and shovels of this buildout. This ETF was designed to give investors direct, concentrated access to an industry that has historically been diluted within broad industrial funds."

Demand for cooling infrastructure across data centers supporting artificial intelligence workloads continues to accelerate. Cooling systems account for approximately 40% of a data center's total energy consumption, according to the U.S. Department of Energy. U.S. data center electricity demand is projected to grow from 147 terawatt-hours in 2023 to over 600 terawatt-hours by 2030, according to McKinsey & Company—a fourfold increase that will require commensurate expansion of thermal management infrastructure.

Beyond data centers, the HVAC industry generates recurring revenue across residential, commercial and institutional markets. Service and installation account for approximately 60% of industry revenue, with average equipment lifespans of 10 to 20 years creating consistent replacement demand. Currently, 87% of U.S. households have air conditioning, compared to approximately 8% in the world's hottest regions—a gap representing 2.8 billion people, according to the International Energy Agency.

"Data centers can't operate without cooling. Neither can hospitals, schools, or the 87% of American homes with air conditioning," said Dan Ahrens, Managing Director at AdvisorShares and portfolio manager of HVAC. "HVAC stocks have historically outperformed, but that performance gets buried inside broad industrial funds. This ETF isolates the opportunity, and active management lets us concentrate on what we view as the strongest companies."

HVAC is actively managed and invests across market capitalizations, targeting companies the portfolio manager believes hold leading positions within the HVAC ecosystem. No passive HVAC index exists, making active management the only avenue for dedicated exposure to the industry. The ETF structure provides daily portfolio transparency, intraday trading with the ability to use limit orders and operational efficiency.

Related Research and Educational Resources

AdvisorShares today released a new educational resource titled "Cooling the Future: How Are HVAC Systems Powering Data Centers and the Next Wave of Energy Infrastructure." The piece examines how rising demand from technology, cloud computing and data center buildouts is driving a "picks and shovels" opportunity across the HVAC industry.

The new resource complements AdvisorShares' existing whitepaper, "The Heat Is On: Innovation, Stability, and Growth in the HVAC Industry," which analyzes historical HVAC stock performance, legislative and regulatory tailwinds, and the structural demand drivers shaping the industry over time.

Together, the two resources provide context on how HVAC companies are positioned at the intersection of energy infrastructure, efficiency and long-term growth. The whitepaper, fund holdings, performance data and additional information on the AdvisorShares HVAC strategy are available at AdvisorShares.com/etfs/HVAC.

*Past performance is not indicative of future results. Returns less than one year are not annualized. For standardized and month-end performance and more information about HVAC, please visit AdvisorShares.com/etfs/HVAC.

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs, providing investment solutions across equities, alternatives and thematic strategies. Financial professionals and investors seeking more information may call 1-877-843-3831 or visit advisorshares.com.

Each weekday at 12:00 p.m. ET, AdvisorShares hosts the AlphaNooner, a live market discussion focused on timely investment topics. Past discussions have covered thematic investing, risk management and hedging strategies, active portfolio construction, interest-rate and policy cycles, and the long-term forces shaping market leadership. Viewers can watch live, submit questions, and engage in real time on X, LinkedIn, Facebook and YouTube.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.

An investment in the Fund is subject to risk, including the possible loss of principal amount invested. There is no guarantee that the Fund will achieve its investment objective.

HVAC ETF Performance Summary
• Year-to-date through January 31, 2026: HVAC returned 10.47%, compared to 1.37% for the S&P 500 Index.
• Since inception (February 3, 2025) through December 31, 2025: HVAC returned 24.13%, compared to 15.56% for the S&P 500 Index.*

HVAC Companies Risk. HVAC companies are subject to a variety of factors that may adversely affect their business or operations, including costs associated with environmental and other regulations, the effects of an economic slowdown, surplus capacity or technological obsolescence, industry competition, labor relations, rate caps or rate changes and other factors. Certain HVAC companies may be subject to extensive regulation by various governmental authorities. The costs of complying with governmental regulations, delays or failures to receive required regulatory approvals or the enactment of new adverse regulatory requirements may adversely affect HVAC companies. HVAC companies may also be affected by service interruption and/or legal challenges due to environmental, operational or other conditions or events, and the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. There is also the risk that corruption may negatively affect publicly-funded infrastructure projects, especially in non-U.S. markets, resulting in work stoppage, delays and cost overruns. Other risks associated with HVAC companies include uncertainties resulting from such companies' diversification into new domestic and international businesses, as well as agreements by any such companies linking future rate increases to inflation or other factors not directly related to the actual operating profits of the enterprise. HVAC companies also can be significantly affected by the national, regional and local real estate markets.

American Depositary Receipt Risk. ADRs have the same currency and economic risks as the underlying non-U.S. shares they represent. They are affected by the risks associated with non-U.S. securities, such as changes in political or economic conditions of other countries, changes in the exchange rates of, or exchange control regulations associated with, foreign currencies, and differing accounting, auditing, financial reporting, and legal standards and practices. In addition, investments in ADRs may be less liquid than the underlying securities in their primary trading market.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

S&P 500 Index – The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

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SOURCE AdvisorShares

FAQ

How has the HVAC ETF (HVAC) performed year-to-date through January 31, 2026?

HVAC returned 10.47% year-to-date through January 31, 2026. According to AdvisorShares, that compares with a 1.37% return for the S&P 500, highlighting concentrated sector outperformance tied to cooling demand.

What is HVAC ETF's since-inception performance through December 31, 2025?

Since inception through December 31, 2025, HVAC returned 24.13%. According to AdvisorShares, this outpaced the S&P 500, which returned 15.56% over the same period, reflecting early fund traction.

What companies and markets does the HVAC ETF (HVAC) invest in?

HVAC invests across market capitalizations in companies within the HVAC ecosystem. According to AdvisorShares, the fund targets leading HVAC equipment, service, and thermal management firms across residential, commercial, and data center markets.

What key risks should investors consider for HVAC ETF (HVAC)?

Investors should expect concentrated sector risk and industry-specific regulatory exposure. According to AdvisorShares, HVAC companies face regulation, economic cycles, and operational risks that may affect service, installation, and equipment demand.

How does HVAC ETF (HVAC) address data center cooling demand?

HVAC targets companies positioned to supply thermal management for data centers and related infrastructure. According to AdvisorShares, data center electricity demand could grow from 147 TWh (2023) to over 600 TWh by 2030, driving cooling demand.