According to a report released by the American Society of Civil Engineers (ASCE) in 2025, if the U.S. Congress maintains current spending levels, the country’s infrastructure will face a funding shortfall of $3.7 trillion over the next decade to remain in a “state of good repair.” In this context, making thematic investments through infrastructure Exchange-Traded Funds (ETFs) becomes an option worth considering.
Infrastructure ETFs invest in a basket of company stocks that provide essential services for daily life, covering sectors such as energy, utilities, transportation, and the increasingly important digital infrastructure—the very foundations that keep the world running. Three infrastructure ETFs stand out as particularly noteworthy.
The Global X U.S. Infrastructure Development ETF (PAVE) focuses on investing in companies that are poised to benefit from the growth in U.S. infrastructure spending. This fund is managed with greater flexibility and has a broader investment scope compared to other similar funds that focus more on utilities, transportation, and energy. In its portfolio, industrial companies account for as much as 72%, materials companies make up 23%, while utilities represent only 3%. The fund holds approximately 100 stocks, making its holdings relatively diversified with small individual stock positions, including numerous industrial giants. Due to its broad focus, it is considered an ETF tracking the U.S. infrastructure and industrial sectors. This potentially gives it greater upside potential during a bull market in stocks.
In contrast, there is the iShares U.S. Infrastructure ETF (IFRA). This ETF aims to provide investors with broad exposure to companies benefiting from the growth in U.S. domestic infrastructure spending. It holds approximately 150 stocks, with a dividend yield of 2.3% in early 2026, and a relatively low management fee of 0.3%. One can think of it as an S&P 500 investment vehicle filtered for companies unrelated to infrastructure spending. Simply put, this means the ETF’s performance is likely to follow the general trend of the S&P 500 but is expected to outperform when the infrastructure theme is in favor and underperform when it is not.
Another product worth attention is the iShares Global Infrastructure ETF (IGF). This fund invests in transportation, communication, water, electric, and other infrastructure-related stocks on a global scale. In early 2026, its holdings consisted of approximately 40% transportation stocks, 40% utilities, and 20% energy stocks. This is a global ETF; of its 76 holdings, only 39% are based in the U.S., 8% in Canada, nearly 8% in Mexico, with the remainder located outside the U.S. The fund aims to allow investors to capitalize on the mega-trend of urbanization and the need to build supporting infrastructure, with airports, ports, energy companies, and various utilities being key investment areas.
