Looking for an investment theme that is working this year despite tariff headwinds and recession concerns? Global infrastructure ETFs are at the top of the winners list, with positive returns YTD. Infrastructure is a broad term, and not all of these ETFs have the same exposure. But generally, companies benefiting from oil, gas, water, electric, and telecommunication infrastructure spending are driving positive returns in global infrastructure ETFs.
The German government’s newly elected Friedrich Merz has announced plans to abandon strict fiscal policies. That would allow Germany to raise debt for defense and infrastructure spending. Once a “beacon of frugality in Europe,” the country’s new government has committed to a €500 billion infrastructure plan. This includes decarbonization projects, rail network expansions, and housing developments, including €100 billion for climate change measures.
Other European policymakers are driving spending in other areas, such as digital communications, to support WIFI and 5G connectivity. The amount of annual spending needed to address the innovation gap, decarbonize Europe’s economy, and upgrade traditional and clean energy infrastructure is expected to be €750 to €800 billion a year. Further, the EU remains committed to being carbon neutral by 2050.
Let’s look at a few of the global infrastructure ETF performance leaders this year and decompose their exposure.
| Symbol | ETF | Total Assets | YTD Return | Expense Ratio |
|---|---|---|---|---|
| BKGI | BNY Mellon Global Infrastructure Income ETF | $89,190,000 | 16.35% | 0.55% |
| INFR | ClearBridge Sustainable Infrastructure ETF | $10,056,000 | 12.65% | 0.59% |
| TOLZ | ProShares DJ Brookfield Global Infrastructure ETF | $165,369,000 | 8.69% | 0.46% |
| NFRA | FlexShares STOXX Global Broad Infrastructure Index Fund | $2,303,900,000 | 7.99% | 0.47% |
| GII | SPDR S&P Global Infrastructure ETF | $501,419,000 | 6.69% | 0.40% |
| IGF | iShares Global Infrastructure ETF | $6,161,710,000 | 6.05% | 0.42% |
At the top of the list in terms of performance is the BNY Mellon Global Infrastructure Income ETF (BKGI ), up 16.35% YTD. The actively managed ETF and focuses on providing exposure to dividend-paying global infrastructure companies. It has a 58% weight in Western Europe, thus benefiting from European infrastructure spending plans.
Another top performer is the index-tracking ClearBridge Sustainable Infrastructure ETF (INFR ), up 12.65% YTD. It also has considerable exposure to European infrastructure companies, with a 67% weight to Western Europe. As the name of the ETF implies, stock selection takes into account sustainability criteria. But the 20-50 stock portfolio also considers fundamental measures such as valuation and cash flows in its selection process.
Other ETFs in the category, such as the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ ), up 8.69%, and the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA ), up 7.99%, have posted better-than-market returns as well. But they lag their global infrastructure ETF peers, given their lower European exposure.
The biggest ETF recipient in terms of inflows YTD has been the iShares Global Infrastructure ETF (IGF ), with $1 billion added in 2025. That’s despite its lower return of 6.05%. The ETF has a 55% weight to North America, with only a 24% weight to Europe.
Investors wanting exposure to the European infrastructure spending theme should take note of the regional exposure of their ETF.
Europe Plans to Spend Trillions on Infrastructure
Europe is taking the U.S. and China’s former lead in allocating to infrastructure spending. This is resulting in a significant spending spree of many trillions over the next decade. More government spending is expected to generate jobs and household spending, which will lead to higher tax revenues.
The hope is that all this spending will pay for itself. In the case of Germany, which was teetering on the verge of a recession, it is jump-starting the country’s flat economy. However, not all global infrastructure ETFs have the same regional exposure. So as is always the case, it is important to know what you own to optimize the desired exposure.
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