Top Infrastructure ETFs to Watch in 2025
Discover the leading infrastructure ETFs including GII, IGF, and IFRA, offering diversified exposure to essential global infrastructure assets.
Infrastructure ETFs such as GII, IGF, and IFRA stand out as premier choices for investors seeking broad exposure to the infrastructure sector.
Infrastructure exchange-traded funds (ETFs) provide investors with access to companies involved in the development and maintenance of critical infrastructure projects like highways, bridges, railways, communication systems, and power grids. Key players in this sector include Dominion Energy Inc. (D), Fortis Inc. (FTS), and Consolidated Edison Inc. (ED).
For those looking to diversify across multiple infrastructure companies rather than selecting individual stocks, infrastructure ETFs offer a compelling solution.
Highlights to Consider
- The infrastructure sector has surpassed the broader U.S. stock market in performance over the last year.
- Top-performing infrastructure ETFs based on one-year trailing returns include GII, IGF, and IFRA.
- Leading holdings in these ETFs feature companies like NextEra Energy Inc. and Infrastructure and Energy Alternatives Inc.
Currently, six major infrastructure ETFs trade in the U.S. market, excluding leveraged, inverse ETFs, and those with assets under $50 million. The S&P Global Infrastructure Index, a benchmark for this sector, has delivered an 8.6% total return over the past 12 months compared to the S&P 500's -5.4% as of August 22, 2022. Among these, the SPDR S&P Global Infrastructure ETF (GII) has led in performance.
Below is an in-depth look at the top three infrastructure ETFs as of August 23, 2022. Note that top holdings exclude cash and securities lending proceeds unless unusually large.
SPDR S&P Global Infrastructure ETF (GII)
- One-year return: 8.3%
- Expense ratio: 0.40%
- Dividend yield: 2.26%
- Average daily volume (3 months): 64,855 shares
- Assets under management: $563.8 million
- Inception: January 25, 2007
- Issuer: State Street
GII tracks the S&P Global Infrastructure Index, comprising the 75 largest infrastructure-related stocks by market cap. The fund provides exposure across transportation, utilities, and energy sectors, with roughly 80% split between utilities and industrials, and the balance in energy. It is a multi-cap, blended ETF.
Top holdings include NextEra Energy Inc. (NEE), a leading North American energy generator and distributor; Transurban Group Ltd. (TCL: ASX), an Australian toll road operator; and Enbridge Inc. (ENB), a Canadian energy pipeline company.
iShares Global Infrastructure ETF (IGF)
- One-year return: 8.2%
- Expense ratio: 0.40%
- Dividend yield: 2.64%
- Average daily volume (3 months): 540,231 shares
- Assets under management: $3.6 billion
- Inception: December 10, 2007
- Issuer: BlackRock Financial Management
Similar to GII, IGF also tracks the S&P Global Infrastructure Index. It adopts a multi-cap, blended strategy with a focus on developed markets. Approximately 79% of its holdings are in utilities and transportation, with the remainder mainly in energy.
Key holdings mirror GII with NextEra Energy, Transurban Group, and Enbridge among the top.
iShares U.S. Infrastructure ETF (IFRA)
- One-year return: 6.9%
- Expense ratio: 0.30%
- Dividend yield: 1.81%
- Average daily volume (3 months): 403,536 shares
- Assets under management: $1.8 billion
- Inception: April 3, 2018
- Issuer: BlackRock Financial Management
IFRA follows the NYSE FactSet U.S. Infrastructure Index, encompassing U.S. companies involved in energy transport, storage, railroads, construction, and engineering services. The fund maintains an equal weighting between owners and operators, targeting firms poised to benefit from increased domestic infrastructure investment. Utilities and industrials make up nearly 75% of its portfolio, followed by energy and other sectors.
Top holdings include Infrastructure and Energy Alternatives Inc. (IEA), specializing in renewable energy infrastructure; Constellation Energy Corp. (CEG), a carbon-free energy leader; and Otter Tail Corp. (OTTR), an electric utility and manufacturer.
Disclaimer: This content is for informational purposes only and does not constitute investment advice or recommendations. While efforts are made to ensure accuracy, no guarantees are provided. Investment suitability varies by individual, and market conditions can change rapidly. Readers should conduct their own research or consult a financial advisor before making investment decisions.
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