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Is iShares U.S. Infrastructure ETF (IFRA) a Strong ETF Right Now?

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Launched on 04/03/2018, the iShares U.S. Infrastructure ETF (IFRA - Free Report) is a smart beta exchange traded fund offering 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.

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.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

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

The fund is managed by Blackrock. IFRA has been able to amass assets over $2.7 billion, making it one of the larger ETFs in the Utilities/Infrastructure ETFs. 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

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.

Annual operating expenses for IFRA are 0.30%, which makes it one of the cheaper products in the space.

It's 12-month trailing dividend yield comes in at 1.86%.

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 42.6% of the portfolio --while Industrials and Materials round out the top three.

Looking at individual holdings, New Fortress Energy Inc Class A (NFE) accounts for about 0.92% of total assets, followed by Constellation Energy Corp (CEG) and Evergy Inc (EVRG).

Its top 10 holdings account for approximately 5.57% of IFRA's total assets under management.

Performance and Risk

Year-to-date, the iShares U.S. Infrastructure ETF has gained about 9.05% so far, and is up roughly 11.56% over the last 12 months (as of 08/04/2025). IFRA has traded between $40.97 and $51.71 in this past 52-week period.

IFRA has a beta of 0.98 and standard deviation of 18.10% 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 $7.65 billion in assets, Global X U.S. Infrastructure Development ETF has $8.91 billion. IGF has an expense ratio of 0.42% 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.

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