Designed to provide broad exposure to the Utilities/Infrastructure ETFs category of the market, the ALPS Electrification Infrastructure ETF (ELFY) is a smart beta exchange traded fund launched on 04/09/2025.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $202.59 million, this makes it one of the average sized ETFs in the Utilities/Infrastructure ETFs. ELFY is managed by Alps. Before fees and expenses, ELFY seeks to match the performance of the LADENBURG THALMANN ELECTRIFICTN INFRA ID.
The Ladenburg Thalmann Electrification Infrastructure Index measures the performance of publicly-listed large-capitalization and mid-capitalization companies that are positioned to benefit from electrification.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.50%.
ELFY's 12-month trailing dividend yield is 0.82%.
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.
ELFY's heaviest allocation is in the Industrials sector, which is about 28% of the portfolio. Its Utilities and Financials round out the top three.
Looking at individual holdings, Argan Inc. (AGX) accounts for about 1.15% of total assets, followed by Corning Inc. (GLW) and Mastec Inc. (MTZ).
The top 10 holdings account for about 10.3% of total assets under management.
Performance and Risk
Year-to-date, the ALPS Electrification Infrastructure ETF has gained about 28.49% so far, and it's up approximately 47.8% over the last 12 months (as of 05/28/2026). ELFY has traded between $30.49 $45.13 in this past 52-week period.
With about 109 holdings, it effectively diversifies company-specific risk .
Alternatives
ALPS Electrification Infrastructure ETF is a reasonable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE) tracks INDXX U.S. Infrastructure Development Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $11.19 billion in assets, Global X U.S. Infrastructure Development ETF has $13.63 billion. GRID has an expense ratio of 0.56% 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.Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>ALPS Electrification Infrastructure ETF (ELFY): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
