A Smarter Way to Play Infrastructure

In recent months, European and emerging-market equities have shown strong performance, leading to increased interest in diversified exposure beyond U.S. markets. Indeed, European investors pulled roughly €2.85B out of U.S. equity ETFs and added €14.6B into European equity ETFs in just one month (mid-Feb to mid-Mar 2025) – a notable shift from 2024. This trend has prompted some investors to explore diversification beyond U.S. mega-caps, especially as geopolitical tensions and supply chain risks drive nations to shore up local infrastructure.

In uncertain times, infrastructure assets shine as a safe haven – essential services like toll roads, power grids, and telecom towers deliver stable, inflation-linked cash flows even when broader markets gyrate. The Rize Global Sustainable Infrastructure UCITS ETF (NFRA) is positioned squarely in this macro sweet spot, offering exposure to the worldwide push for resilient, next-generation infrastructure with a balanced regional profile and low cyclicality.

Differentiated, Defensive & Macro-Aligned Exposure

NFRA stands apart from traditional infrastructure funds by offering global, future-focused exposure with broad diversification across regions and company sizes.¹

At just 32.5% U.S. weight, NFRA’s regional exposure is far more balanced: 42.5% Americas, 24% Emerging Markets, 16% Europe & Middle East, and 18% Pacific. This is particularly relevant in the context of shifting global supply chains, evolving trade policies, and institutional demand for broader regional diversification.²

NFRA’s mid-cap tilt (45.2%) is another key differentiator. Mid-cap infrastructure operators tend to be domestically anchored, offering reliable, inflation-linked cash flows while being more insulated from global trade tensions and external shocks. They’re also often at the forefront of local infrastructure development—an increasingly strategic asset class for governments and private capital alike.³

The sector allocation is defensive by design:

• 40.6% Industrials (transport networks, engineering, logistics)
• 26.7% Utilities (clean water, power distribution)
• 18.1% Real Estate (data centres, telecom towers)

Critically, exposure to Financials (2.9%) and Energy (0%) is negligible—two of the most cyclically exposed sectors in traditional infra benchmarks.⁴

Performance is being driven by the right places.

The top 10 holdings, many of which are among this year’s best performers, include:

• Latin America: Grupo Aeroportuario del Pacífico (Mexico), SABESP (Brazil), Telefônica Brasil – all beneficiaries of global trade rerouting.
• Europe: Severn Trent (UK), Ferrovial (Spain), Acciona (Spain), Getlink (France–UK Channel Tunnel).
• U.S. – Selective exposure to secular growth themes: Digital Realty and Equinix (AI-driven data centres), Republic Services (waste management) – all aligned with long-term digital and urban infrastructure trends.

This blend makes NFRA an all-weather infrastructure play:

• It’s global, with balanced exposure across developed and emerging markets.
• It’s defensive, but not stagnant.
• It’s sustainable, but still pragmatic—with 98% of holdings qualifying under SFDR Article 9 criteria.

NFRA captures the next wave of infrastructure investment: cleaner, more digital, more decentralised—and far better aligned with the shifting needs of economies and portfolios alike.

Strong Performance and Low-Vol Positioning

Over the past 12 months, the Rize Global Sustainable Infrastructure UCITS ETF (NFRA) has delivered a +9.54% total return, providing a steady and resilient return profile during a period marked by interest rate volatility, geopolitical tension, and structural shifts in global trade.⁵

  — Rize Global Sustainable Infrastructure UCITS ETF

— Foxberry Global Sustainable Infrastructure Index

Unlike traditional infrastructure funds that lean heavily on energy or financials, NFRA’s diversified sector mix (industrials, utilities, digital real estate) and balanced geographic allocation (Americas: 42%, EM: 24%, Europe & Middle East: 16%, Pacific: 18%) have helped it navigate through choppy macro conditions with greater stability.

In particular, since the start of April—a period defined by heightened trade policy uncertainty and renewed volatility—NFRA has shown clear resilience. Its focus on essential, domestically oriented infrastructure operators has helped insulate the portfolio from external shocks.

This profile isn’t about chasing beta—it’s about mitigating drawdowns:

• Low correlation to mainstream global equity indices,
• Lower beta relative to MSCI World over time,
• Broad diversification across ~76 holdings, with no single name exceeding ~2%.

From Brazilian toll roads and Spanish utilities to U.S. data centres and Mexican airport operators, NFRA’s exposures are grounded in real-world infrastructure with inflation-linked cash flows and limited reliance on global supply chains.

For investors seeking diversification from U.S. large-cap growth, and a more durable, income-generating equity allocation, NFRA offers an increasingly relevant solution in today’s fragmented global landscape.

Key Takeaways for Investors

• Macro-Aligned Diversification: NFRA provides broad global reach across Europe, Latin America, and Asia-Pacific—offering a complement to U.S. equity exposure for globally minded portfolios.
• Defensive Sector Positioning: A core tilt toward Industrials (40.6%) and Utilities (26.7%) gives NFRA stability through economic cycles, with virtually no exposure to energy or financials—two of the most cyclically vulnerable sectors today.
• Mid-Cap Tilt = Local Resilience: 45% of the portfolio is mid-cap, favouring domestic operators with lower exposure to global supply chain risks and tariff disruptions.
• Broadly Diversified, No Single-Stock Risk: With ~76 holdings and no position over ~2%, NFRA avoids the concentration traps common in global equity benchmarks and traditional infra funds.
• Resilience When It Matters: Since early April, NFRA has demonstrated strong price momentum and downside insulation—benefiting from exposure to real-world assets with inflation-linked income and local demand drivers.⁶

Conclusion

The Rize Global Sustainable Infrastructure UCITS ETF offers investors an alternative path through today’s fractured markets—less U.S. exposure, less cyclicality, and more resilience where it counts. Amid renewed trade fragmentation, currency pressures, and re-industrialisation efforts, infrastructure is re-emerging as a structural theme. NFRA captures this shift with a global, mid-cap, and sector-pure approach—anchored in essential services and modern networks. For European investors seeking differentiated global equity exposure that balances stability and relevance, NFRA offers a timely and pragmatic solution.