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Should You Invest in the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID)?
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Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID - Free Report) , a passively managed exchange traded fund launched on 11/16/2009.
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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $2.23 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. GRID seeks to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index before fees and expenses.
The Nasdaq Clean Edge Smart Grid Infrastructure Index tracks the performance of common stocks in the grid and electric energy infrastructure sector.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Johnson Controls International Plc (JCI - Free Report) accounts for about 8.44% of total assets, followed by Abb Ltd (ABBN.SW) and National Grid Plc (NG/.LN).
The top 10 holdings account for about 55.17% of total assets under management.
Performance and Risk
The ETF has lost about -0.44% and is up about 7.27% so far this year and in the past one year (as of 03/18/2025), respectively. GRID has traded between $109.73 and $128.54 during this last 52-week period.
The ETF has a beta of 1.31 and standard deviation of 20.60% for the trailing three-year period, making it a high risk choice in the space. With about 110 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GRID is an excellent 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 $5.99 billion in assets, Global X U.S. Infrastructure Development ETF has $7.99 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 First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID)?
Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID - Free Report) , a passively managed exchange traded fund launched on 11/16/2009.
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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $2.23 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. GRID seeks to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index before fees and expenses.
The Nasdaq Clean Edge Smart Grid Infrastructure Index tracks the performance of common stocks in the grid and electric energy infrastructure sector.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Johnson Controls International Plc (JCI - Free Report) accounts for about 8.44% of total assets, followed by Abb Ltd (ABBN.SW) and National Grid Plc (NG/.LN).
The top 10 holdings account for about 55.17% of total assets under management.
Performance and Risk
The ETF has lost about -0.44% and is up about 7.27% so far this year and in the past one year (as of 03/18/2025), respectively. GRID has traded between $109.73 and $128.54 during this last 52-week period.
The ETF has a beta of 1.31 and standard deviation of 20.60% for the trailing three-year period, making it a high risk choice in the space. With about 110 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GRID is an excellent 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 $5.99 billion in assets, Global X U.S. Infrastructure Development ETF has $7.99 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.