Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the Global X U.S. Infrastructure Development ETF (PAVE Quick QuotePAVE - Free Report) , a passively managed exchange traded fund launched on March 6, 2017.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $9.12 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.

The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.

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 0.47%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.54%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Industrials sector -- about 74.1% of the portfolio. Materials and Utilities round out the top three.

Looking at individual holdings, Howmet Aerospace Inc (HWM) accounts for about 4.22% of total assets, followed by Fastenal Co (FAST) and Quanta Services Inc (PWR).

The top 10 holdings account for about 32.52% of total assets under management.

Performance and Risk

The ETF has added roughly 14.48% and is up roughly 18.22% so far this year and in the past one year (as of 07/24/2025), respectively. PAVE has traded between $33.78 and $46.15 during this last 52-week period.

The ETF has a beta of 1.23 and standard deviation of 21.47% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.

Alternatives

Global X U.S. Infrastructure Development 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, PAVE is an outstanding 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.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $2.94 billion in assets, iShares Global Infrastructure ETF has $7.57 billion. GRID has an expense ratio of 0.56%, and IGF charges 0.42%.

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.