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iShares U.S. Infrastructure ETF Could Extend its Rally Towards $40

By:
Hassan Maishera
Updated: Dec 22, 2021, 08:07 UTC

The iShares U.S. Infrastructure ETF has added more than 25% to its value since the start of the year and could top $40 soon.

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Infrastructure stocks have been one of the top performers in the United States this year, thanks to President Biden’s huge plan to rebuild the country. This has affected the performance of the funds in that space over the past few months.

IFRA Continues to Perform Excellently

The iShares U.S. Infrastructure ETF (IFRA) is one of the best-performing funds in the infrastructure category this year. Its value has increased by more than 25% since the start of the year and could be set for more gains over the coming months.

IFRA is a smart beta exchange-traded fund that has been around since 2018. The fund is managed by BlackRock and currently has more than $770 million in assets under management, making it one of the average sized ETFs in the Utilities/Infrastructure sector of the United States market.

The ETF is designed to match the performance of the NYSE FACTSET U.S. INFRASTRUCTURE INDEX before fees and expenses. The index comprises stocks of U.S companies that are focused on infrastructure. The fund invests more than 40% of its portfolio in the utility sector, with industrial and materials rounding up the top three.

IFRA Can Rally Towards the $40 Mark

At press time, IFRA is trading at $36 per coin, up by more than 1.5% during the U.S. market on Tuesday. Since the start of the year, the fund has added more than 25% to its value, making it one of the top performers in the market.

The ETF could rally higher and end the year close to the $40 mark. Its annual operating expenses stand at 0.30%, which makes it one of the cheaper products in the space. IFRA has a 12-month trailing dividend yield of 1.87%.

IFRA’s MACD just crossed the neutral zone. Source: FXEMPIRE

The MACD line just crossed the neutral zone, indicating that the ETF could rally higher in the coming sessions. The RSI of 50 shows that IFRA is slowly heading towards the oversold region following recent performances.

If IFRA can maintain its current momentum, then it could end the year trading just above the $40 level.

About the Author

Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.

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