Using infrastructure to help “build” your portfolio

Jay Jacobs Aug 22, 2025 Equity

KEY TAKEAWAYS

  • From the roads we drive on to the data networks that power our digital devices, infrastructure forms the foundation of daily life and drives economic activity. It can also serve as a unique building block of investment portfolios.
  • “Listed infrastructure” refers to the publicly traded companies that own or operate essential systems and facilities that support daily life and economic activity, including roads, power lines, and others.
  • We believe listed infrastructure stocks offer unique characteristics, such as diversification, lower volatility, yield and inflation hedging potential. ETFs such as the iShares U.S. Infrastructure ETF (IFRA) and the iShares Infrastructure Active ETF (BILT) may provide liquid access for investors to add infrastructure investments to a diversified portfolio.

    01:16 – 07:10
    When you think about the seasons, infrastructure probably isn't the first thing that pops into your head.

     

    07:14 – 08:23
    But when you look closer, each season shines a light on the often overlooked investment opportunity of infrastructure.

     

    14:16 – 22:16
    Back to school, back to work and watching the big game. What do they have in common? Data, and lots of it.

     

    22:16 – 28:08
    That's why 88 million U.S. households will add broadband internet by 2029.

     

    28:08 – 30:10
    When the weather outside is frightful, it's nice to come in from the cold. U.S. households and businesses consumed 3.9 trillion cubic feet of natural gas in January 2025, 68% more than in May and 26% more than in the January 10 years before.

     

    46:14 – 48:02
    Spring means travel – for weekend outings, sporting events, weddings and spring break – driving revenue for the companies who build and maintain roads, as well as toll-road operators, who project electronic toll collections to grow 287%, reaching $43 billion by 2035.

     

    1:08:09 – 1:29:14
    Between swimming pools, watering the lawn and slip and slide in the yard. Water utilities typically see a 20% revenue increase in the summer months. Infrastructure is essential and investable, and iShares ETFs can help you make the most of an opportunity that surrounds you every day. Invest with iShares infrastructure ETFs.

     

    Disclosures:

     

    Listed Infrastructure common holdings within S&P 500 is 3.4% as of 31 May 2025. Listed Infra = FTSE Developed Core Infrastructure 50/50 Index.

     

    Indexes are unmanaged. It is not possible to invest directly in an index.

     

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.i5hares.com or www.blackrock.com. Read the prospectus carefully before investing.

     

    Investing involves risk, including possible loss of principal.

     

    Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.

     

    International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political. economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries.

     

    Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses.

     

    This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BIackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things. projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.

     

    This material contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision. This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

     

    Prepared by BlackRock Investments, LLC, member FINRA.

     

    ©2025 BlackRock, Inc or its affiliates. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. or its affiliates. All other marks are the property of their respective owners.

     

    iCRMH0825U/S-4765227

    Video 01:37

    Learn more about how infrastructure surrounds you every day through every season.

    01:16 – 07:10
    When you think about the seasons, infrastructure probably isn't the first thing that pops into your head.

     

    07:14 – 08:23
    But when you look closer, each season shines a light on the often overlooked investment opportunity of infrastructure.

     

    14:16 – 22:16
    Back to school, back to work and watching the big game. What do they have in common? Data, and lots of it.

     

    22:16 – 28:08
    That's why 88 million U.S. households will add broadband internet by 2029.

     

    28:08 – 30:10
    When the weather outside is frightful, it's nice to come in from the cold. U.S. households and businesses consumed 3.9 trillion cubic feet of natural gas in January 2025, 68% more than in May and 26% more than in the January 10 years before.

     

    46:14 – 48:02
    Spring means travel – for weekend outings, sporting events, weddings and spring break – driving revenue for the companies who build and maintain roads, as well as toll-road operators, who project electronic toll collections to grow 287%, reaching $43 billion by 2035.

     

    1:08:09 – 1:29:14
    Between swimming pools, watering the lawn and slip and slide in the yard. Water utilities typically see a 20% revenue increase in the summer months. Infrastructure is essential and investable, and iShares ETFs can help you make the most of an opportunity that surrounds you every day. Invest with iShares infrastructure ETFs.

     

    Disclosures:

     

    Listed Infrastructure common holdings within S&P 500 is 3.4% as of 31 May 2025. Listed Infra = FTSE Developed Core Infrastructure 50/50 Index.

     

    Indexes are unmanaged. It is not possible to invest directly in an index.

     

    Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.i5hares.com or www.blackrock.com. Read the prospectus carefully before investing.

     

    Investing involves risk, including possible loss of principal.

     

    Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.

     

    International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political. economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries.

     

    Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses.

     

    This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BIackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things. projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.

     

    This material contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision. This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

     

    Prepared by BlackRock Investments, LLC, member FINRA.

     

    ©2025 BlackRock, Inc or its affiliates. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. or its affiliates. All other marks are the property of their respective owners.

     

    iCRMH0825U/S-4765227

    IFRA

    iSHARES U.S. INFRASTRUCTURE ETF

    Target U.S. infrastructure companies.

    BILT

    iSHARES INFRASTRUCTURE ACTIVE ETF

    Target active exposure to global infrastructure.

    WHAT IS INFRASTRUCTURE INVESTING?

    Infrastructure refers to the systems and services that support the functioning of society. Traditionally, that includes physical assets like roads and bridges, airports and railways, power grids, utilities and water systems. Today’s infrastructure goes beyond concrete and steel. It also includes essential digital services, like cell towers and data centers.

    Infrastructure is both vital to today’s global economy and is also enabling the emergence of powerful mega forces — from AI to demographic shifts, and reshoring. Global demand for infrastructure investment may total $68 trillion between now and 2040 as policymakers, business leaders, and investors worldwide are increasingly aligned on the need to modernize and expand infrastructure for a 21st-century economy.1

    Investors may be taking notice of this growing asset class. Currently, assets under management in dedicated listed infrastructure funds have reached nearly $150 billion globally.2  These funds invest in the securities of companies that own or operate the underlying physical assets, providing liquid exposure to a sector that may be traditionally accessed via private, illiquid funds.

    Listed infrastructure can be broadly split into four areas:

    Utilities

    Midstream

    Transport

    Digital

    SEASONAL SPOTLIGHT SUMMER

    This summer, you may be engaging with infrastructure more than you realize, from the roads we drive on, planes we took on holiday and the air conditioning used to keep cool — infrastructure helps form the foundation of daily life.

    TRAVEL:
    TRAFFIC AND REVENUE

    Summer vacations bring more people to airports and toll roads, while travelers depend on Wifi/Internet network connectivity to buy tickets, look up directions and make reservations.

    14

    of the 16 busiest days for air travel between 2009 and 2024 worldwide took place in either July or August.3

    66%

    of U.S. travelers are planning a summer road trip, making it the most common mode of travel.4

    80%

    of world travelers feel it’s important to book their trips entirely online.5

    PORTS:
    RISING TIDE OF TOURISM

    As cruises surpass their pre-Covid levels, ports around the world are raising the per-passenger fees they charge.⁶

    37.1 M

    Passengers projected to embark on cruises in 2025, up from 29.7 million in 2019.7

    5

    The average number of ports called on by a cruise ship.8

    $37

    The per-passenger port fee on cruise ships in Mexico up from an average of US$20.6

    POTENTIAL BENEFITS OF INVESTING IN INFRASTRUCTURE

    Listed infrastructure is becoming an increasingly common part of the conversations surrounding investors’ portfolios given its unique investment characteristics:

    • Diversification: Infrastructure investments may have lower volatility than the broad equity market, as infrastructure stocks can exhibit stable earnings growth through economic cycles versus the broader market. This stability can potentially lead to lower earnings volatility during economic slowdowns or recessions.
    • Economic & Inflation Resilience: Because infrastructure may involve essential services that remain in demand regardless of economic conditions, Infrastructure companies can perform in periods of higher inflation. This performance can be attributed to several factors, including regulated infrastructure companies having explicit revenues tied to inflation and higher interest rates.
    • Income Generation: Toll roads, bridges, airports, and energy utilities tend to be built with long lifespans (decades or more) and can have relatively predictable and consistent revenue over time. These revenues can give listed infrastructure companies the ability to generate consistent cash flows which can be returned to shareholders in the form of dividends. The dividend yield of listed infrastructure in developed economies is over 3%, more than double that available from the S&P 500.9
    • Thematic tailwinds: The mega forces of AI and digitalization could drive increased demand for electricity generation and transmission, driven by AI data centers and everyday factors like air conditioning. Geopolitical fragmentation is leading to a demand for reshoring, driving a potential need for improved highways, waterways, ports and more.

    HOW TO INVEST IN LISTED INFRASTRUCTURE?

    Many investors may only have small exposures to listed infrastructure, gained incidentally through investing in broad stock indexes. For example, the S&P 500 has only 3.4% exposure to listed infrastructure companies.10 Infrastructure varies widely by sector and region; global managers have performed better than broad equity managers with 7 out of 10 active infrastructure managers outperforming over the past five years.11

    Infrastructure stocks remain at a discount to the broader equity market12, despite their defensive characteristics and potential earnings growth. This may present an opportunity for investors interested in listed infrastructure, especially if earnings growth accelerates — driven by rapid investment into areas such as AI and reshoring.

    For investors seeking balance between growth and stability, infrastructure may serve as a potential portfolio building block — especially when accessed through ETFs. For many investors, infrastructure ETFs may strike a balance of accessibility, diversification, and liquidity, since ETFs can be bought and sold on an exchange like a stock. Whether you’re building a new foundation for your portfolio or looking to diversify your income sources, infrastructure can potentially support your investment strategy — as it supports your daily life.

    Investors interested in U.S. infrastructure exposure may consider the iShares U.S. Infrastructure ETF (IFRA), which can provide access to both infrastructure owners & operators and infrastructure enablers.

    Investors interested in active exposure to global infrastructure, may consider the iShares Infrastructure Active ETF (BILT). Launched in July 2025, BILT is an actively managed ETF focused on publicly traded utilities, midstream energy companies, transportation and digital infrastructure.

    To learn more about infrastructure and other themes in focus, read our 2025 Mid-Year Update.

    FEATURED FUNDS

    • iShares ETFs are available to purchase through a brokerage account or with a financial advisor.

      Buy through your brokerage

      iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.

      By clicking on the button below, you will leave BlackRock’s website.

      Buy now on Fidelity

      Contact your advisor

      Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.

      Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

      Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.

      Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

      The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

      ©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

      iCRMH1124U/S-3985892

    • iShares ETFs are available to purchase through a brokerage account or with a financial advisor.

      Buy through your brokerage

      iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.

      By clicking on the button below, you will leave BlackRock’s website.

      Buy now on Fidelity

      Contact your advisor

      Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.

      Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

      Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.

      Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.

      The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

      ©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

      iCRMH1124U/S-3985892

    Photo: Jay Jacobs

    Jay Jacobs

    U.S. Head of Thematic and Active ETFs at BlackRock

    Ashley Saidler

    Thematic Strategist

    Contributor