If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the ALPS Electrification Infrastructure ETF (ELFY), a passively managed exchange traded fund launched on April 9, 2025.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Alps. It has amassed assets over $202.5 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. ELFY seeks to match the performance of the LADENBURG THALMANN ELECTRIFICTN INFRA ID before fees and expenses.
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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.5%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.82%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector -- about 27.5% of the portfolio. 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
So far this year, ELFY return is roughly 28.52%, and is up roughly 50.22% in the last one year (as of 05/27/2026). During this past 52-week period, the fund has traded between $30.37 and $45.128.
With about 109 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS Electrification Infrastructure ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ELFY is a good option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $11.16 billion in assets, Global X U.S. Infrastructure Development ETF has $13.48 billion. GRID has an expense ratio of 0.56%, and PAVE charges 0.47%.
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.
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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.
