Explore the potential benefits and risks of investing in the GRID ETF for clean energy infrastructure
Chicago: The First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF, or GRID, is designed to give investors a broad look at the utilities and infrastructure market. Launched back in 2009, it’s a passively managed fund that’s been gaining traction.
More and more investors, both retail and institutional, are leaning towards these types of ETFs. They’re known for being cost-effective, transparent, and flexible, making them a solid choice for long-term investing.
Sector ETFs like GRID are great for diversifying your portfolio while keeping risks low. Right now, the Utilities – Infrastructure sector is ranked in the top 31% of Zacks sectors, which is pretty impressive.
This fund is backed by First Trust Advisors and has over $2 billion in assets. It aims to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index, which focuses on stocks in the electric energy infrastructure sector.
When it comes to costs, GRID has an expense ratio of 0.57%, which is on the higher side compared to some other funds. It also offers a 12-month trailing dividend yield of 1.05%.
Investors should check out the actual holdings in the fund. GRID is pretty transparent and shares its holdings daily. The top three holdings include Schneider Electric, Abb Ltd, and National Grid, making up a significant portion of the fund.
This year, GRID has seen a gain of about 1.31%, and over the past year, it’s up around 20.36%. The fund has traded between $98.77 and $128.54 in the last 52 weeks, showing some solid performance.
With a beta of 1.24, GRID is considered a higher-risk option, but it does have 109 holdings to help spread out that risk. It’s rated a strong buy by Zacks, making it a great pick for those looking to invest in the utilities and infrastructure space.
If you’re exploring other options, there are similar ETFs like the iShares Global Infrastructure ETF and the Global X U.S. Infrastructure Development ETF, which also have substantial assets and lower expense ratios.
For more insights on ETFs and investment strategies, check out Zacks ETF Center. They offer a free newsletter that keeps you updated on the latest news and top-performing ETFs.
