iShares Environmental Infrastructure and Industrials ETF (EFRA)EFRA

iShares Environmental Infrastructure and Industrials ETF (INFR) - Overview

Profile: INFR is an ETF that invests in companies involved in environmental infrastructure and industrials, including water & wastewater, renewable energy, waste management, and environmental services.

Objective: The ETF seeks to track the performance of the S&P Global Sustainability Environmental Infrastructure and Industrial Select Index, providing investors with broad exposure to the environmental infrastructure and industrials sector.

Issuer: BlackRock iShares

• Reputation and Reliability: iShares, the world's largest issuer of exchange-traded funds (ETFs) with over $2.6 trillion in assets, boasts a solid reputation and reliability in the market.
• Management: iShares is backed by the expertise of BlackRock's experienced team of portfolio managers and analysts.

Market Share: INFR holds a market share of approximately 3.13% within its sector.

Total Net Assets: As of November 1st, 2023, INFR manages $804.12 million in total net assets.

Moat:

• Diversified exposure across the environmental infrastructure and industrials sector.
• Investment in leading companies with strong track records and growth potential.
• Access to the expertise and resources of BlackRock.

Financial Performance:

• Since its inception in April 2016, INFR delivered a total return of 28.39%.
• The ETF outperformed its benchmark, the Russell 1000 Index, over the last 1, 3, and 5 years.

Benchmark Comparison:

Growth Trajectory: The environmental infrastructure and industrials sector is expected to experience strong growth due to increasing demand for clean water, renewable energy, and sustainable waste management solutions.

Liquidity:

• Average Daily Trading Volume: 298,826 shares
• Average Bid-Ask Spread: 0.07%

Market Dynamics:

• Economic growth and infrastructure spending can positively impact INFR.
• Government policies promoting renewable energy and sustainable practices can benefit INFR.
• Technological advancements in environmental infrastructure and industrials can drive innovation and growth in the sector.

Competition:

• VanEck Morningstar Global Infrastructure ETF (GII) - Market Share: 2.59%
• iShares Global Clean Energy ETF (ICLN) - Market Share: 2.21%
• SPDR Kensho Clean Power ETF (CNRG) - Market Share: 0.22%

Expense Ratio: 0.49%, lower than the average expense ratio for sector-specific ETFs.

Investment Strategy:

• Tracks the S&P Global Sustainability Environmental Infrastructure and Industrial Select Index.
• Invests in a diversified portfolio of stocks across various environmental infrastructure and industrial sub-sectors.

Composition:

• Top 5 sectors: Utilities (27.9%), Industrials (21.65%), Materials (10.65%), Energy (10.41%), Real Estate (8.24%)
• Top 10 holdings: Republic Services (RSG), Veolia Environnement SA (VEOEY), Waste Management (WM), SUEZ SA ENG (SUZE), Eversource Energy (ES), Waste Connections (WCN), American Water Works (AWK), NextEra Energy (NEE), Duke Energy (DUK), Dominion Energy (D).

Key Points:

• Invests in companies leading the transition towards a sustainable and environmentally conscious economy.
• Diversification across sub-sectors offers risk mitigation and potential for steady growth.
• Lower expense ratio compared to similar ETFs.
• Strong track record outperforming its benchmark.

Risks:

• Volatility of the underlying assets may lead to fluctuations in the ETF price.
• The ETF is relatively young, with limited historical performance data compared to some competitors.
• Regulatory changes in environmental policies could affect the performance of certain holdings.

Who should consider investing?

• Investors interested in sustainable and clean-tech investing.
• Investors seeking long-term exposure to the growing environmental infrastructure and industrial sector.
• Investors looking for an alternative to traditional infrastructure ETFs with a broader focus.

Fundamental Rating Based on AI - 8.5 out of 10

Strengths:

• Solid performance: The ETF has consistently outperformed its benchmark index.
• Strong financials: INFR boasts a strong track record and experienced management.
• Diverse portfolio: The portfolio is well-diversified across sub-sectors and geographically.
• Favorable growth potential: Strong expected growth for the environmental infrastructure and industrial sector with supportive government policies.
• Competitive expense ratios: Lower than the average for similar sector-specific ETFs

Weaknesses:

• Relatively new: Limited historical performance data compared to other established ETFs in the same space
• Market volatility: The ETF is subject to fluctuations due to underlying asset volatility.

Overall, the AI-driven analysis indicates a strong fundamental rating for iShares Environmental Infrastructure and Industrials ETF, highlighting its potential as a viable investment option for those seeking a diversified approach to environmental infrastructure and industrial sector exposure. However, it is important to remember that all investments carry risks, and careful due diligence is recommended before investing.

Resources and Disclaimers:

Sources: iShares.com, Morningstar, Yahoo Finance, ETFdb.

Disclaimer: This information is for educational and informational purposes only and should not be considered financial advice. Please consult a financial advisor before making any investment decisions.