Should You Invest in the ALPS Electrification Infrastructure ETF (ELFY)?

Designed to provide broad exposure to the Utilities - Infrastructure segment of the equity market, the ALPS Electrification Infrastructure ETF (ELFY) is a passively managed exchange traded fund launched on April 9, 2025.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.

Index Details

The fund is sponsored by Alps. It has amassed assets over $200.06 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. ELFY seeks to match the performance of the LADENBURG THALMANN ELECTRIFICTN INFRA ID before fees and expenses.

The Ladenburg Thalmann Electrification Infrastructure Index measures the performance of publicly-listed large-capitalization and mid-capitalization companies that are positioned to benefit from electrification.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.5%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.02%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Utilities sector -- about 35.6% of the portfolio. Industrials and Energy round out the top three.

The top 10 holdings account for about 9.88% of total assets under management.

Performance and Risk

So far this year, ELFY has added about 20.41%, and is up roughly 24.53% in the last one year (as of 08/05/2026). During this past 52-week period, the fund has traded between $33.508 and $45.613.

The ETF has a beta of 0.99 and standard deviation of 19.69% for the trailing three-year period. With about 116 holdings, it effectively diversifies company-specific risk.

Alternatives

ALPS Electrification Infrastructure ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ELFY is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE) tracks INDXX U.S. Infrastructure Development Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $12.17 billion in assets, Global X U.S. Infrastructure Development ETF has $15.15 billion. GRID has an expense ratio of 0.56%, and PAVE charges 0.47%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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This article originally published on Zacks Investment Research (zacks.com).

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