The infrastructure industry is thriving, driven by rising investments in advanced capabilities, increasing demand, and growing urbanization. As a result, investors looking to tap into this growth may find good opportunities in iShares Global Infrastructure (IGF), iShares U.S. Infrastructure (IFRA), and SPDR S&P Global Infrastructure (GII). Read on….
The infrastructure sector has been flourishing, fueled by rapid urbanization, increased global spending, and technological progress. Against this backdrop, investors may scoop up shares of fundamentally sound infrastructure ETFs, iShares Global Infrastructure ETF (IGF), iShares U.S. Infrastructure ETF (IFRA), and SPDR S&P Global Infrastructure ETF (GII).
Demographic shifts, global economic power changes, and rapid urbanization are reshaping our world. These trends are expected to spark a massive demand for innovative infrastructure, driving transformation for decades.
The industry’s integration of digital innovation is further set to change the future. For instance, the increasing uptake of digital twins in asset management and design demonstrates the industry’s capacity and desire to transform. The change is a testament to the fact that the infrastructure sector is actively adapting to modern demands.
Additionally, with the need for demand of better and more advanced infrastructure comes the significantly large scope of investments. According to a study by PwC, the worldwide capital project and infrastructure spending is expected to reach $9 trillion in 2025, a steep rise from just $4 trillion in 2012.
In line with this, Mordor Intelligence forecasts the infrastructure sector to expand to $3.92 trillion by 2030, growing at a CAGR of 6.3%. This growth exhibits the wide range of opportunities available for investors looking to make it big in the infrastructure sector.
Now, let us dive deep into the fundamentals of three infrastructure ETFs, starting with #3.
ETF #3: iShares Global Infrastructure ETF (IGF)
Launched by BlackRock, Inc. (BLK) and managed by BlackRock Fund Advisors, IGF invests in stocks of companies operating across energy, oil, gas and consumable fuels, industrials, transportation, and more. It tracks the performance of the S&P Global Infrastructure Index by using a representative sampling technique.
With $5.03 billion in assets under management (AUM), IGF’s top holdings include Aena SME SA (AENA) with a 4.67% weighting, followed by Transurban Group Ltd. (TCL) at 4.59% weighting, Enbridge Inc. (ENB) at 4.45% and NextEra Energy, Inc. (NEE) at 4.28%.
The ETF has a total of 77 holdings, with its top 10 assets comprising 36.7% of its AUM. Plus, IGF has an expense ratio of 0.42%, lower than the category average of 0.44%. Its net inflows came in at $893.31 million over the past three months and $1.14 billion over the past six months.
In addition, IGF pays an annual dividend of $1.68, which translates to a 3.18% yield at the current price level. Moreover, the fund’s dividend payouts have grown at a CAGR of 13.4% over the past three years.
IGF has gained 8.4% over the past six months and 11.6% over the past year to close the last trading session at $52.74. The fund’s NAV was $52.69 as of January 8, 2025.
IGF’s POWR Ratings reflect its strong prospects. The fund has an overall rating of A, translating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
IGF has an A grade for Buy & Hold and Trade. It is ranked #4 out of 133 ETFs in the B-rated Global Equities ETFs group.
To access all IGF’s POWR Ratings, click here.
ETF #2: iShares U.S. Infrastructure ETF (IFRA)
Launched by BLK and managed by BlackRock Fund Advisors, IFRA invests in stocks of companies operating across materials, industrials, capital goods, construction and engineering, machinery and more. It aims to track the performance of the NYSE FactSet U.S. Infrastructure Index using the representative sampling technique.
With an AUM of $3.14 billion, IFRA’s top holdings include New Fortress Energy Inc. (NFE) with a 0.96% weighting, followed by Kinetik Holdings Inc. (KNTK) at 0.82%, Vistra Corp. (VST) at 0.82% and Antero Midstream Corp. (AM) at 0.81%. The ETF has a total of 158 holdings, with its top 10 assets comprising 8.3% of its AUM.
Its expense ratio is 0.30%, lower than the category average of 0.44%. Its net inflows came in at $412.74 million over the past three months and $539.70 million over the past year.
IFRA pays an annual dividend of $0.81, which translates to a 1.76% yield at the current price level. The fund’s dividend payouts have increased at a CAGR of 11% over the past five years.
IFRA has surged 10.2% over the past six months and 15.2% over the past year to close the last trading session at $45.92. The fund has a NAV of $45.94 as of January 8, 2025.
IFRA’s POWR Ratings reflect its prospects. It has a B grade for Buy & Hold. The ETF is ranked #18 out of 36 ETFs in the Industrials Equities ETFs group.
To check all the POWR Ratings for IFRA, click here.
ETF #1: SPDR S&P Global Infrastructure ETF (GII)
Launched by State Street Global Advisors, Inc. and managed by SSGA Funds Management, Inc., GII invests in stocks of companies operating across energy, industrials, transportation, utilities sectors. It aims to replicate the performance of the S&P Global Infrastructure Index using a representative sampling technique.
With $490.80 million in AUM, GII’s top holdings are AENA with a 4.71% weighting, followed by TCL with a 4.60% weighting, ENB with a 4.46% weighting and NEE at 4.30% weighting. GII has a total of 78 holdings, with its top 10 assets comprising 36.84% of its AUM.
The fund has an expense ratio of 0.40%, lower than the category average of 0.44%. Its net inflows came in at $43.60 million over the past three months and $49.37 million over the past six months.
Furthermore, GII pays an annual dividend of $1.91, which translates to a 3.20% yield at the current price level. Its dividend payouts have grown at a CAGR of 14.2% over the past three years.
The ETF has gained 7.8% over the past six months and 11.1% over the past year to close the last trading session at $59.69. The fund’s NAV was $60.18 as of January 07, 2025.
GII’s POWR Ratings reflect its strong fundamentals. The fund has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
GII as an A grade for Buy & Hold and Trade. Within the Global Equities ETFs group, it is ranked #9 out of 133 ETFs.
Click here to see all GII’s POWR Ratings.
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IGF shares were unchanged in premarket trading Thursday. Year-to-date, IGF has gained 0.90%, versus a 0.58% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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