Should You Invest in the iShares U.S. Infrastructure ETF (IFRA)? Zacks Equity Research <time>Mon, May 26, 2025 at 6:20 AM EDT</time> 3 min read <p>Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the iShares U.S. Infrastructure ETF (IFRA), a passively managed exchange traded fund launched on 04/03/2018.</p><p>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.</p><p>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 3, placing it in top 19%.</p><h2>Index Details</h2><p>The fund is sponsored by Blackrock. It has amassed assets over $2.40 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.</p><p>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.</p><h2>Costs</h2><p>When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.</p><p>Annual operating expenses for this ETF are 0.30%, making it one of the cheaper products in the space.</p><p>It has a 12-month trailing dividend yield of 1.93%.</p><h2>Sector Exposure and Top Holdings</h2><p>It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.</p><p>This ETF has heaviest allocation in the Utilities sector--about 41.70% of the portfolio. Industrials and Materials round out the top three.</p><p>Looking at individual holdings, Nrg Energy Inc (NRG) accounts for about 0.99% of total assets, followed by Compass Minerals International Inc (CMP) and Constellation Energy Corp (CEG).</p><p>The top 10 holdings account for about 6.35% of total assets under management.</p><h2>Performance and Risk</h2><p>The ETF has added about 2.99% so far this year and was up about 10.52% in the last one year (as of 05/26/2025). In that past 52-week period, it has traded between $40.97 and $51.71.</p><p>The ETF has a beta of 0.98 and standard deviation of 18.81% for the trailing three-year period. With about 162 holdings, it effectively diversifies company-specific risk.</p><h2>Alternatives</h2><p>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 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.</p><p>IShares Global Infrastructure ETF (IGF) tracks S&amp;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 $6.91 billion in assets, Global X U.S. Infrastructure Development ETF has $8.16 billion. IGF has an expense ratio of 0.42% and PAVE charges 0.47%.</p><h2>Bottom Line</h2><p>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.</p><p>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a>Click to get this free report</a></p><p><a>iShares U.S. Infrastructure ETF (IFRA): ETF Research Reports</a></p><p><a>NRG Energy, Inc. (NRG) : Free Stock Analysis Report</a></p><p><a>Constellation Energy Corporation (CEG) : Free Stock Analysis Report</a></p><p><a>iShares Global Infrastructure ETF (IGF): ETF Research Reports</a></p><p><a>Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report</a></p><p><a>Global X U.S. Infrastructure Development ETF (PAVE): ETF Research Reports</a></p><p><a>This article originally published on Zacks Investment Research (zacks.com).</a></p><p><a>Zacks Investment Research</a>

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

The article discusses the iShares U.S. Infrastructure ETF (IFRA), a passively managed ETF launched in 2018 that tracks the NYSE FactSet U.S. Infrastructure Index. It highlights the fund's low expense ratio (0.30%), strong sector exposure in utilities and industrials, and performance metrics, while comparing it to alternatives like IGF and PAVE.