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Is iShares U.S. Power Infrastructure ETF (POWR) a Strong ETF Right Now?

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A smart beta exchange traded fund, the iShares U.S. Power Infrastructure ETF (POWR - Free Report) debuted on 01/31/2012, and offers broad exposure to the Utilities/Infrastructure ETFs category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Blackrock. POWR has been able to amass assets over $437.56 million, making it one of the average sized ETFs in the Utilities/Infrastructure ETFs. Before fees and expenses, this particular fund seeks to match the performance of the S&P US POWER INFRASTRUCTURE SELECT INDEX.

The S&P U.S. Power Infrastructure Select Index measures the performance of equity securities of U.S.-domiciled companies involved in U.S. power infrastructure.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Operating expenses on an annual basis are 0.39% for this ETF, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 6.50%.

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.

Representing 49.7% of the portfolio, the fund has heaviest allocation to the Utilities sector; Industrials and Energy round out the top three.

Taking into account individual holdings, Ge Vernova (GEV) accounts for about 6.58% of the fund's total assets, followed by Eaton Plc (ETN) and Nextera Energy (NEE).

The top 10 holdings account for about 47.52% of total assets under management.

Performance and Risk

Year-to-date, the iShares U.S. Power Infrastructure ETF has gained about 5.13% so far, and is up roughly 0% over the last 12 months (as of 09/17/2026). POWR has traded between $23.20 $28.22 in this past 52-week period.

POWR has a beta of 0.46 and standard deviation of 0.00% for the trailing three-year period. With about 82 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares U.S. Power Infrastructure ETF is not a suitable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE) tracks INDXX U.S. Infrastructure Development Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $11.59 billion in assets, Global X U.S. Infrastructure Development ETF has $13.3 billion. GRID has an expense ratio of 0.56% and PAVE changes 0.47%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Utilities/Infrastructure ETFs

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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