We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?
Read MoreHide Full Article
Designed to provide broad exposure to the Utilities - Infrastructure segment of the equity market, the iShares U.S. Infrastructure ETF (IFRA - Free Report) is a passively managed exchange traded fund launched on 04/03/2018.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $938.12 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. IFRA seeks to match the performance of the NYSE FACTSET U.S. INFRASTRUCTURE INDEX before fees and expenses.
The NYSE FactSet U.S. Infrastructure Index comprises of equities of U.S. companies that have infrastructure exposure and that could benefit from a potential increase in domestic infrastructure activities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.30%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.73%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 43.80% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Allegheny Technologies Inc (ATI - Free Report) accounts for about 1.01% of total assets, followed by Century Aluminum (CENX - Free Report) and Enlink Midstream Common Units (ENLC - Free Report) .
The top 10 holdings account for about 9.02% of total assets under management.
Performance and Risk
The ETF return is roughly 5.01% and is up about 15.60% so far this year and in the past one year (as of 04/21/2022), respectively. IFRA has traded between $33.99 and $39.92 during this last 52-week period.
The ETF has a beta of 1.04 and standard deviation of 26.83% for the trailing three-year period. With about 155 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Infrastructure ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IFRA is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE - Free Report) tracks INDXX U.S. Infrastructure Development Index. IShares Global Infrastructure ETF has $3.54 billion in assets, Global X U.S. Infrastructure Development ETF has $5.10 billion. IGF has an expense ratio of 0.43% and PAVE charges 0.47%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?
Designed to provide broad exposure to the Utilities - Infrastructure segment of the equity market, the iShares U.S. Infrastructure ETF (IFRA - Free Report) is a passively managed exchange traded fund launched on 04/03/2018.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $938.12 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. IFRA seeks to match the performance of the NYSE FACTSET U.S. INFRASTRUCTURE INDEX before fees and expenses.
The NYSE FactSet U.S. Infrastructure Index comprises of equities of U.S. companies that have infrastructure exposure and that could benefit from a potential increase in domestic infrastructure activities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.30%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.73%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 43.80% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Allegheny Technologies Inc (ATI - Free Report) accounts for about 1.01% of total assets, followed by Century Aluminum (CENX - Free Report) and Enlink Midstream Common Units (ENLC - Free Report) .
The top 10 holdings account for about 9.02% of total assets under management.
Performance and Risk
The ETF return is roughly 5.01% and is up about 15.60% so far this year and in the past one year (as of 04/21/2022), respectively. IFRA has traded between $33.99 and $39.92 during this last 52-week period.
The ETF has a beta of 1.04 and standard deviation of 26.83% for the trailing three-year period. With about 155 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Infrastructure ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IFRA is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE - Free Report) tracks INDXX U.S. Infrastructure Development Index. IShares Global Infrastructure ETF has $3.54 billion in assets, Global X U.S. Infrastructure Development ETF has $5.10 billion. IGF has an expense ratio of 0.43% and PAVE charges 0.47%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.