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Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?
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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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 3, placing it in top 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.27 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 1.67%.
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 40.70% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, New Fortress Energy Inc Class A (NFE - Free Report) accounts for about 1.02% of total assets, followed by Antero Midstream Corp (AM - Free Report) and Kinder Morgan Inc (KMI - Free Report) .
The top 10 holdings account for about 3.45% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Infrastructure ETF return is roughly 4.64% so far, and it's up approximately 28.76% over the last 12 months (as of 01/21/2025). IFRA has traded between $38.14 and $51.71 in this past 52-week period.
The ETF has a beta of 1.05 and standard deviation of 18.43% for the trailing three-year period. With about 166 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Infrastructure ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IFRA is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $5.17 billion in assets, Global X U.S. Infrastructure Development ETF has $8.90 billion. IGF has an expense ratio of 0.42% 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.
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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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 3, placing it in top 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.27 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 1.67%.
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 40.70% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, New Fortress Energy Inc Class A (NFE - Free Report) accounts for about 1.02% of total assets, followed by Antero Midstream Corp (AM - Free Report) and Kinder Morgan Inc (KMI - Free Report) .
The top 10 holdings account for about 3.45% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Infrastructure ETF return is roughly 4.64% so far, and it's up approximately 28.76% over the last 12 months (as of 01/21/2025). IFRA has traded between $38.14 and $51.71 in this past 52-week period.
The ETF has a beta of 1.05 and standard deviation of 18.43% for the trailing three-year period. With about 166 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Infrastructure ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IFRA is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $5.17 billion in assets, Global X U.S. Infrastructure Development ETF has $8.90 billion. IGF has an expense ratio of 0.42% 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.