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Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)?

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If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the iShares U.S. Infrastructure ETF (IFRA - Free Report) , a passively managed exchange traded fund launched on April 3, 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.

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 4, placing it in top 25%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $3.13 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.3%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.7%.

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.

This ETF has heaviest allocation in the Utilities sector -- about 44.5% of the portfolio. Industrials and Materials round out the top three.

Looking at individual holdings, Argan Inc (AGX) accounts for about 0.99% of total assets, followed by Mdu Resources Group Inc (MDU) and Nextera Energy Inc (NEE).

The top 10 holdings account for about 6.44% of total assets under management.

Performance and Risk

The ETF has added roughly 15.2% so far this year and it's up approximately 4.6% in the last one year (as of 12/03/2025). In that past 52-week period, it has traded between $40.97 and $54.04.

The ETF has a beta of 1.01 and standard deviation of 16.55% for the trailing three-year period. With about 157 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.

iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE) tracks INDXX U.S. Infrastructure Development Index. iShares Global Infrastructure ETF has $8.89 billion in assets, Global X U.S. Infrastructure Development ETF has $9.73 billion. IGF has an expense ratio of 0.39%, 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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