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Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?
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Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the iShares U.S. Infrastructure ETF (IFRA - Free Report) , a passively managed exchange traded fund launched on 04/03/2018.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.85 billion, making it one of the larger 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.89%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 37.80% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.09% of total assets, followed by Sjw Group (SJW - Free Report) and Artesian Resources Corp Class A (ARTNA - Free Report) .
The top 10 holdings account for about 5.80% of total assets under management.
Performance and Risk
The ETF has gained about 5.07% so far this year and is up roughly 4.38% in the last one year (as of 03/01/2023). In that past 52-week period, it has traded between $32.24 and $39.92.
The ETF has a beta of 1.04 and standard deviation of 28.56% for the trailing three-year period. With about 164 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 a great 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.
Global X U.S. Infrastructure Development ETF (PAVE - Free Report) tracks INDXX U.S. Infrastructure Development Index and the iShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index. Global X U.S. Infrastructure Development ETF has $3.80 billion in assets, iShares Global Infrastructure ETF has $3.78 billion. PAVE has an expense ratio of 0.47% and IGF charges 0.40%.
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.
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Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?
Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the iShares U.S. Infrastructure ETF (IFRA - Free Report) , a passively managed exchange traded fund launched on 04/03/2018.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.85 billion, making it one of the larger 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.89%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 37.80% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.09% of total assets, followed by Sjw Group (SJW - Free Report) and Artesian Resources Corp Class A (ARTNA - Free Report) .
The top 10 holdings account for about 5.80% of total assets under management.
Performance and Risk
The ETF has gained about 5.07% so far this year and is up roughly 4.38% in the last one year (as of 03/01/2023). In that past 52-week period, it has traded between $32.24 and $39.92.
The ETF has a beta of 1.04 and standard deviation of 28.56% for the trailing three-year period. With about 164 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 a great 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.
Global X U.S. Infrastructure Development ETF (PAVE - Free Report) tracks INDXX U.S. Infrastructure Development Index and the iShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index. Global X U.S. Infrastructure Development ETF has $3.80 billion in assets, iShares Global Infrastructure ETF has $3.78 billion. PAVE has an expense ratio of 0.47% and IGF charges 0.40%.
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.