The iShares U.S. Infrastructure ETF (IFRA) was launched on 04/03/2018, and is a smart beta exchange traded fund designed to offer broad exposure to the Utilities/Infrastructure ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $2.30 billion, this makes it one of the larger ETFs in the Utilities/Infrastructure ETFs. IFRA is managed by Blackrock. 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.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.30%.
It's 12-month trailing dividend yield comes in at 2%.
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.
IFRA's heaviest allocation is in the Utilities sector, which is about 46.40% of the portfolio. Its Industrials and Materials round out the top three.
Looking at individual holdings, Oneok Inc (OKE) accounts for about 1.37% of total assets, followed by H And E Equipment Services Inc (HEES) and Exelon Corp (EXC).
IFRA's top 10 holdings account for about 6.86% of its total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Infrastructure ETF has lost about -0.33% so far, and it's up approximately 9.06% over the last 12 months (as of 04/03/2025). IFRA has traded between $41.23 and $51.71 in this past 52-week period.
IFRA has a beta of 0.96 and standard deviation of 18.38% for the trailing three-year period. With about 160 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Infrastructure ETF is an excellent option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. There are other ETFs in the space which 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 $6.15 billion in assets, Global X U.S. Infrastructure Development ETF has $7.85 billion. IGF has an expense ratio of 0.42% and PAVE charges 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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iShares U.S. Infrastructure ETF (IFRA): ETF Research Reports Exelon Corporation (EXC): Free Stock Analysis Report ONEOK, Inc. (OKE): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report iShares Global Infrastructure ETF (IGF): ETF Research Reports Global X U.S. Infrastructure Development ETF (PAVE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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