Designed to provide broad exposure to the Utilities/Infrastructure ETFs category of the market, the iShares U.S. Infrastructure ETF (IFRA) is a smart beta exchange traded fund launched on 04/03/2018.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
IFRA is managed by Blackrock, and this fund has amassed over $4.24 billion, which makes it one of the larger ETFs in the Utilities/Infrastructure ETFs. This particular fund 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.30% for this ETF, which makes it one of the least expensive products in the space.
IFRA's 12-month trailing dividend yield is 1.57%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 39.4% of the portfolio, the fund has heaviest allocation to the Industrials sector; Utilities and Materials round out the top three.
When you look at individual holdings, Caterpillar Inc (CAT) accounts for about 4.42% of the fund's total assets, followed by Nextera Energy Inc (NEE) and Union Pacific Corp (UNP).
IFRA's top 10 holdings account for about 24.83% of its total assets under management.
Performance and Risk
The ETF has gained about 18.44% so far this year and is up about 29.31% in the last one year (as of 06/15/2026). In the past 52-week period, it has traded between $47.65 and $62.87
IFRA has a beta of 0.95 and standard deviation of 16.26% for the trailing three-year period. With about 168 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.
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 $11.26 billion in assets, Global X U.S. Infrastructure Development ETF has $13.89 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.Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Infrastructure ETF (IFRA): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).