Thematic Equity – Elite Capital Management Group
Thematic Equity

The race engineer doesn't just read the data —
they read the race

Most equity strategies react to what already happened. Thematic investing is different — it's structured conviction about macro forces already in motion, expressed through a disciplined architecture where every position earns its place.

Two forces are reshaping the global economy — and both are just getting started

Not all investment themes are created equal. Some are speculative — driven by narrative, not earnings. Some are mature — the opportunity already captured in the price. The most valuable moment in any transformational theme is the inflection point: past the early speculation, but before widespread adoption makes the opportunity obvious to everyone and prices it accordingly.

Elite Capital's equity strategy is built around two macro convictions we believe will define the next decade: the global AI infrastructure buildout and the physical rebuilding of America. Both have entered the Early Majority phase of adoption — the steepest part of the curve, historically accompanied by the fastest rate of commercial growth.

Critically, these are not independent themes. The AI economy cannot function without the physical infrastructure to power it — and the infrastructure buildout is being accelerated by the extraordinary capital demands of AI. They reinforce each other in ways that make holding both simultaneously not just logical, but essential.

The Race Engineer PerspectiveA race engineer reads the telemetry in real time — but the best ones also see three turns ahead. They position the car not for the corner it's in, but for the sequence about to unfold. That's exactly what thematic equity investing demands: disciplined conviction about structural forces already in motion, expressed through an architecture built to capitalize on where the race is going — not where it's been.

Themes selected for where they are in the adoption cycle — not for where they've been

Theme One
Artificial Intelligence & Technology
AI is transitioning from early adopter territory into the steepest part of the adoption curve. The hyperscalers — Microsoft, Google, Amazon, Meta — have committed hundreds of billions in combined AI infrastructure capital expenditure over the next several years. The semiconductor supply chain, data center buildout, and software platforms required to support that transformation are being built right now, by companies generating real revenue against real purchase orders. And while AI has crossed into Early Majority adoption, the underlying technology continues to evolve rapidly — creating new adoption cycles within the broader theme and extending the investment runway well beyond what a typical placement on the curve might suggest. AI market projected to grow from $434 billion in 2026 to $2.5 trillion by 2031.Source: Mordor Intelligence, January 2026
Theme Two
U.S. Infrastructure Development
The American Society of Civil Engineers awarded U.S. infrastructure a C grade in their 2025 Report Card — a mark that reflects decades of systematic underinvestment in roads, bridges, water systems, electrical grids, and industrial facilities. The Infrastructure Investment and Jobs Act, the CHIPS and Science Act, the Inflation Reduction Act, and the domestic manufacturing reshoring movement have created a structural demand cycle that no single policy decision can reverse. The companies that design, build, supply, and maintain that infrastructure are the direct beneficiaries — many of them mid-cap specialists the S&P 500 barely touches. ASCE awarded U.S. infrastructure a C grade in 2025. Nearly $1 trillion committed through federal infrastructure legislation.Source: ASCE 2025 Infrastructure Report Card; Politico, 2024

The inflection point is the thesis

Both of Elite Capital's current equity convictions have been independently placed in the Early Majority phase of the adoption lifecycle by Global X's Thematic Adoption Framework (May 2026) — past the noise of early speculation, but before full mainstream saturation has closed the opportunity. The steepest part of the curve is where the fastest commercial growth historically occurs. That's where we are today.

INNOVATORS 2.5% EARLY ADOPTERS 13.5% EARLY MAJORITY 34% LATE MAJORITY 34% LAGGARDS 16% ADOPTION ▲ INFLECTION POINT — TODAY
PAVE — U.S. Infrastructure Development: ASCE C grade in 2025 confirms decades of underinvestment. The buildout is just beginning.
AIQ — AI & Technology: Market growing from $434B (2026) to $2.5T (2031). Commercial adoption accelerating across every sector.

Chart is for illustrative purposes only. Adoption curve positioning for both themes reflects Global X's published Thematic Adoption Menu (May 2026), which places both Artificial Intelligence and U.S. Infrastructure Development in the Early Majority phase. This is not a mathematical projection or guarantee of future performance. Source: Global X Thematic Adoption Framework, May 2026; ASCE 2025 Infrastructure Report Card; Mordor Intelligence, January 2026.

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A disciplined portfolio — each position selected for the specific role it plays

Elite Capital expresses these convictions through a carefully constructed portfolio of institutional-grade ETFs. The construction is intentional: no two positions duplicate each other's work, and each one earns its place. The core and anchor positions provide broad market stability and valuation discipline. The thematic sleeves provide targeted exposure to the structural forces we believe are in the earliest stages of a multi-decade buildout. Every fund in the current portfolio carries an independent Morningstar rating of four or five stars, reflecting risk-adjusted performance recognized by an independent third party. Past ratings are not guarantees of future results.

WTV
★★★★★
WisdomTree U.S. Value Fund — The Anchor
Profitability and valuation discipline. The counterweight that keeps the portfolio grounded when growth narratives run ahead of fundamentals.
WisdomTree's earnings and dividend weighting produces something genuinely surprising: a value fund with NVIDIA, Dell, Cisco, and Salesforce alongside deep positions in financials, energy, healthcare, industrials, utilities, and REITs. No single position exceeds 3.5%. When growth multiples compress or rate sensitivity returns, WTV is built to hold up — and its exceptional sector breadth ensures the portfolio is never purely a momentum bet.
Representative Holdings NVIDIA · Dell · Cisco · Salesforce · Citigroup · Morgan Stanley · Goldman Sachs · Chevron · Exxon · Thermo Fisher · Duke Energy · VICI Properties · Honeywell · Illinois Tool Works
PAVE
★★★★★
Global X U.S. Infrastructure Development ETF — The Builder
Every holding does something physical — building, moving, connecting, or supplying the infrastructure that makes the economy function.
This is not a utilities fund with an infrastructure label. The portfolio runs from blue-chip industrials — Quanta Services, Eaton, Trane Technologies, Nucor, United Rentals, Parker Hannifin — through a deep roster of mid-cap specialists executing the buildout today. PAVE is also, in part, an AI infrastructure fund: Quanta alone builds the grid connections that hyperscaler data centers depend on, making the two themes structurally linked at the holding level.
Representative Holdings Quanta Services · Eaton · Trane Technologies · Nucor · United Rentals · Deere · Parker Hannifin · Howmet Aerospace · Emerson Electric · Vulcan Materials · Martin Marietta · Emcor Group
AIQ
★★★★
Global X Artificial Intelligence & Technology ETF — The Innovator
The global semiconductor supply chain and AI software stack — with genuine international exposure no domestic index can replicate.
Top holdings are the memory and logic chips that power AI computing: SK Hynix, Micron, Samsung, AMD, Intel, and TSMC — the world's most critical semiconductor manufacturer. Beyond hardware, AIQ accesses international AI leaders unavailable through domestic indices: Siemens, SAP, and Infineon from Germany; Tencent and Alibaba from China; Fanuc from Japan. Domestically, it captures names market-cap weighting underserves — Palantir, CoreWeave, AppLovin, Snowflake, and Datadog.
Representative Holdings SK Hynix · Micron · Samsung · AMD · Intel · TSMC · NVIDIA · Broadcom · Microsoft · Palantir · Siemens · SAP · Tencent · Alibaba · Fanuc

A rationale your board can articulate — documentation your examiner can evaluate

Credit unions operate in a governance environment where every investment decision should be explainable and defensible. Thematic equity isn't a collection of exciting names — it's a structured thesis, expressed through a documented architecture of institutional-grade ETFs, each selected for a specific and articulable reason. When your board asks why these funds are in the portfolio, the answer is the thesis itself: two structural forces, clearly identified, at a well-defined point in their adoption cycle.

Intentional

Every position in the portfolio has a defined role. The core, the anchor, and the thematic sleeves do different things deliberately — no duplication, no drift, no passive acceptance of what the market happened to weight most heavily.

Transparent

ETF holdings are fully disclosed and publicly available. Your board can see exactly what the portfolio owns, why each fund was selected, and what role it plays in the overall architecture.

Defensible

Appropriate for CDA portfolios and employee benefit pre-funding strategies with longer time horizons. Full documentation — thesis, fund selection rationale, and holdings — available for any board review or regulatory examination.

The question worth askingWhen your board reviews the equity portion of your portfolio, can you explain not just what you own — but why those positions, why now, and where the underlying companies fit in a larger structural story? Thematic equity gives you that answer. We'd like to show you what the architecture looks like applied to your institution.

Thematic equity strategies involve risks that may not be present in broad market index funds. Thematic ETFs carry concentration risk and may experience greater volatility than diversified benchmarks. International holdings introduce currency and geopolitical risk. The adoption lifecycle framework referenced on this page reflects Global X's published Thematic Adoption Menu (May 2026); it is for illustrative purposes only and does not constitute a projection or guarantee of investment outcomes. Morningstar ratings referenced reflect risk-adjusted historical performance relative to category peers as of the date cited and are not guarantees of future results. Statistical projections for AI market growth are sourced from Mordor Intelligence (January 2026) and the ASCE 2025 Infrastructure Report Card; they are third-party estimates and are not representations of Elite Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. These strategies are designed for portfolios where equity exposure is appropriate under applicable regulatory guidelines — primarily CDA portfolios and pre-funding strategies with longer time horizons. Suitability must be determined on an institution-by-institution basis. Not NCUA insured. No credit union guarantee. May lose value. Elite Capital Management Group, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. This material is provided for informational purposes only and does not constitute investment advice or a solicitation. A copy of our Form ADV Part 2A is available at adviserinfo.sec.gov or upon request.