President Donald Trump's latest move to secure the U.S. bulk-power system could be a shot in the arm for ETFs that track grid modernization, electrical equipment, and power infrastructure. On Wednesday, Trump signed Executive Order 14420, declaring a national emergency over foreign-produced bulk-power equipment. The order targets substation transformers, grid-connected inverters, battery energy-storage systems, high-voltage circuit breakers, and industrial control systems, along with their software and remote-access capabilities.

For investors, the question is which funds stand to benefit. The First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) is one of the clearest plays on the theme. Eaton Corporation (NYSE:ETN) makes up 8.9% of the fund, Tesla Inc (NASDAQ:TSLA) 1.7%, and GE Vernova Inc (NYSE:GEV) 0.9%. With 119 securities across the global smart-grid ecosystem, the fund offers broad exposure to companies that could benefit from a shift toward domestic or secure suppliers.

That exposure matters because the order could push utilities and infrastructure operators to favor U.S.-based or trusted vendors as the Department of Energy crafts its rules. The iShares U.S. Power Infrastructure ETF (NYSE:POWR) takes a more homegrown approach. Its top holdings include GE Vernova at 6.1%, Eaton at 6.0%, and Quanta Services, Inc. (NYSE:PWR) at 5.8%. Electric utilities account for roughly 35% of the portfolio, with electrical components and equipment adding another 17.6%.

The immediate opportunity isn't a blanket ban, but what comes next. The executive order gives the Energy Department 120 days to publish implementing rules and identify equipment or foreign entities that could face restrictions. Officials are also told to weigh replacement availability, reliability, and continuity of service, which means the final rules could determine how quickly utilities can shift sourcing. That creates a potentially important catalyst window for grid-focused ETFs.

For investors, the key is whether the order accelerates a broader U.S. power-equipment reshoring cycle, and whether ETFs already holding companies like Eaton and GE Vernova offer a diversified way to ride it. If the rules favor domestic production, these funds could see renewed interest as the market prices in a long-term shift in how the grid gets built.