Launched on 04/03/2018, the iShares U.S. Infrastructure ETF (IFRA) is a smart beta exchange traded fund offering 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
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
Managed by Blackrock, IFRA has amassed assets over $3.85 billion, making it one of the larger ETFs in the Utilities/Infrastructure ETFs. Before fees and expenses, IFRA seeks to match the performance of the NYSE FACTSET U.S. INFRASTRUCTURE INDEX .
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
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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.30%.
It's 12-month trailing dividend yield comes in at 1.63%.
Sector Exposure and Top Holdings
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.
For IFRA, it has heaviest allocation in the Utilities sector --about 41.8% of the portfolio --while Industrials and Materials round out the top three.
Looking at individual holdings, Ryerson Holding Corp (RYZ) accounts for about 1.06% of total assets, followed by Century Aluminum (CENX) and Hawaiian Electric Industries Inc (HE).
The top 10 holdings account for about 6.31% of total assets under management.
Performance and Risk
The ETF has added roughly 13.98% so far this year and it's up approximately 39.61% in the last one year (as of 04/14/2026). In the past 52-week period, it has traded between $42.98 and $60.55
IFRA has a beta of 0.98 and standard deviation of 16.12% for the trailing three-year period. With about 155 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 $10.39 billion in assets, Global X U.S. Infrastructure Development ETF has $12.6 billion. IGF has an expense ratio of 0.39% 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).