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

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Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the iShares U.S. Power Infrastructure ETF (POWR - Free Report) , a passively managed exchange traded fund launched on January 31, 2012.

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.

Sector ETFs are also funds of convenience, offering many 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 8, placing it in top 50%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $441.26 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. POWR seeks to match the performance of the S&P US POWER INFRASTRUCTURE SELECT INDEX before fees and expenses.

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.

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 0.39%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 6.4%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 51% of the portfolio. Industrials and Energy round out the top three.

Looking at individual holdings, Eaton Plc (ETN) accounts for about 6.56% of total assets, followed by Quanta Services Inc (PWR) and Ge Vernova (GEV).

The top 10 holdings account for about 48.28% of total assets under management.

Performance and Risk

The ETF has added about 6.7% so far this year and is up about 4.21% in the last one year (as of 11/05/2026). In that past 52-week period, it has traded between $23.2 and $28.22.

The ETF has a beta of 0.51 and standard deviation of 17.83% for the trailing three-year period. With about 82 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Power Infrastructure ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. POWR, then, is not the best option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. However, there are better ETFs in the space to 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 $10.95 billion in assets, Global X U.S. Infrastructure Development ETF has $13.91 billion. GRID has an expense ratio of 0.56%, 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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