NFRA ETF Review: Is FlexShares Infrastructure Worth Buying?

FlexShares STOXX Global Broad Infrastructure ETF provides global infrastructure exposure spanning utilities, transportation, and energy across developed and emerging markets — the only infrastructure ETF in the Energy Macro framework with significant international diversification.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is NFRA?

NFRA tracks the STOXX Global Broad Infrastructure Index, holding approximately 200 companies worldwide that own and operate essential infrastructure. Managed by FlexShares (Northern Trust), this ETF casts a wide net across utilities, telecom, transportation, pipelines, and waste management companies globally. The fund weights holdings by infrastructure revenue rather than market cap, ensuring portfolio exposure aligns with actual infrastructure operations.

Basics: 0.47% expense ratio, $2.9B AUM, launched December 2013

Current Snapshot

Why It Matters for Real Asset Investors

NFRA serves as the core tollbooth asset play in the Energy Macro framework. These are companies that collect recurring revenue from essential services — whether moving electricity, data, freight, or waste. When currency debasement accelerates, infrastructure assets become prime beneficiaries because their rate-regulated revenues often adjust for inflation while their hard assets appreciate.

This ETF particularly shines during periods of fiscal expansion and infrastructure spending. Unlike energy commodity plays that fluctuate with supply cycles, infrastructure companies generate steady cash flows from assets society cannot function without. The 6% yield provides current income while the underlying assets offer long-term protection against monetary debasement.

NFRA struggles during rapid interest rate increases because infrastructure companies carry significant debt loads and investors flee dividend-paying assets for higher bond yields. However, once rate hiking cycles peak, infrastructure becomes attractive again as a income-producing alternative to declining bond yields.

Top Holdings

Deutsche Telekom (3.8%) - Germany's dominant telecom operator with extensive fiber and 5G infrastructure across Europe. Benefits from digital infrastructure buildout.

SoftBank Group (3.7%) - Japanese telecom conglomerate with mobile networks and technology investments. Exposure to Japan's infrastructure modernization.

Canadian Pacific Kansas City (3.3%) - Transcontinental railway connecting North American trade corridors. Essential for commodity transport.

Canadian National Railway (2.8%) - Canada's largest railroad with strategic routes to ports. Benefits from North American freight growth.

Iberdrola (2.5%) - Spanish utility with major renewable energy operations. Play on Europe's energy transition infrastructure.

Deutsche Post (2.5%) - Germany's postal and logistics giant DHL. Benefits from e-commerce and global trade infrastructure.

AT&T (2.5%) and Verizon (2.5%) - US telecom duopoly with 5G networks and fiber infrastructure essential for digital economy.

NextEra Energy (2.4%) - Florida utility and renewable energy leader. Major wind and solar infrastructure developer.

How It Fits the Portfolio

NFRA works as a 5-15% allocation for investors seeking global infrastructure exposure with inflation protection. The fund's geographic diversification reduces single-country regulatory risk while maintaining exposure to essential assets across developed markets. The infrastructure revenue weighting methodology ensures you're buying actual infrastructure operations, not financial engineering.

This pairs well with US-focused utility ETFs for domestic overweight or commodity-linked infrastructure like energy pipelines. NFRA provides the steady yield component while more cyclical real asset plays handle the growth potential during commodity cycles.

Regime Signals

NFRA outperforms during three key environments: infrastructure spending cycles (fiscal stimulus), late-cycle growth (when utilities benefit from economic activity), and early inflation periods (when rate-regulated revenues adjust upward). The fund struggles during rapid tightening cycles and deflationary periods when growth slows.

Watch for central bank dovish pivots, infrastructure spending announcements, and regulatory rate increases in major markets. Dollar weakness also benefits the 60% international exposure. NFRA typically leads broader markets when investors rotate from growth to income strategies.

Related Research

• Alabama Power Grid Risk Assessment
• NextEra Energy (NEE) Tollbooth Analysis
• IFRA: iShares U.S. Infrastructure ETF
• PAVE: Global X U.S. Infrastructure Development ETF
• Duke Energy (DUK) Tollbooth Analysis

Frequently Asked Questions

How does NFRA differ from U.S.-focused infrastructure ETFs?

NFRA allocates across global infrastructure, with roughly 50% in the U.S. and 50% across Europe, Asia-Pacific, and emerging markets. This provides exposure to international infrastructure spending — European grid modernization, Asian port and rail development, and emerging market utility growth. U.S.-focused ETFs like PAVE and IFRA miss these international opportunities entirely.

What is the expense ratio of NFRA?

NFRA charges a 0.47% expense ratio, in line with other infrastructure ETFs. The global scope requires tracking a more complex index across multiple markets and currencies, justifying the fee. For investors who want a single infrastructure allocation with international diversification, NFRA provides reasonable cost-efficiency compared to building a multi-ETF global infrastructure portfolio.

What types of companies does NFRA hold?

NFRA holds global infrastructure operators across three pillars: energy infrastructure (pipelines, utilities, power generation), transportation (airports, toll roads, railroads), and communication (cell towers, data centers). Top holdings include companies like National Grid, Enbridge, Transurban, and Aena. The diversification across infrastructure types and geographies creates a lower-volatility infrastructure allocation.

Is NFRA a good long-term infrastructure investment?

NFRA is well-suited for investors seeking steady, globally diversified infrastructure returns with moderate income. The global scope means it benefits from infrastructure spending cycles across different economies, reducing dependence on any single government's fiscal policy. Within Energy Macro, NFRA complements U.S.-focused PAVE and IFRA by adding international grid and energy infrastructure exposure.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, FlexShares filings