From renewable energy to fibre networks, infrastructure is no longer just about roads and power lines. 

Infrastructure used to mean roads, pipes, and power grids. But in today’s market, it also includes data centres and energy infrastructure that supports the transition to a low-carbon economy.

The Smart Global Infrastructure ETF, built with iShares and listed on the NZX, provides Kiwi investors with exposure to these long-term growth themes. The fund tracks an index that is split 50/50: half in utilities (such as electricity, gas, and water), and half in other infrastructure (such as transport, energy pipelines, fibre networks, and digital infrastructure). 

At a time of market uncertainty and energy transition, infrastructure offers both growth potential and resilience.

“Infrastructure has become increasingly popular,” says Catherine Pollock, GM Business Development and Distribution at Smartshares (Smart). 

“More people became interested in the sector after policy announcements like the Inflation Reduction Act in the US, which focused spending on renewable energy.”

The three Ds driving infrastructure investment

BlackRock identifies three major structural trends that are driving infrastructure demand: decarbonisation, digitalisation, and demographics.

  • Decarbonisation: According to BlackRock, global energy investment is projected to rise from US$2.2 trillion to US$3.5 trillion per year by 2030.

“Within energy, there's a clear shift in focus toward green and renewable energy,” Pollock says.

  • Digitalisation: As the world becomes more connected, physical infrastructure is needed to store, transmit and deliver data. 

“We need fibre networks, cell towers, data centres, and cloud infrastructure to support everything from streaming video to smart cities,” says Pollock.

  • Demographics and urbanisation: An ageing population and urban growth are creating sustained demand for transport, utilities, and healthcare infrastructure. 

“Infrastructure is about what society needs: The roads, energy and communications that keep it running,” she says.

“Infrastructure today is as much about cables and cloud as it is about concrete.” 

Making infrastructure accessible

Traditionally, infrastructure was seen as the domain of governments or institutional investors, given its long-term nature and high capital requirements. 

“Historically, everyday investors didn’t have access to this asset class,” Pollock says. 

“It’s hard to get into a fibre rollout or an energy pipeline. But with ETFs, you can start investing straight away in these global trends with small amounts.”

The Smart Global Infrastructure ETF is traded on the NZX and fully hedged to the NZ dollar. “That means you’re not taking on currency risk,” she says. “And you don’t have to worry about foreign tax or FX fees.”

Defensive characteristics in volatile times

Pollock says infrastructure can play a defensive role in a broader portfolio, particularly in times of inflation or market volatility. 

“Many infrastructure assets have long-term contracts where revenue is linked to inflation,” she says. “That can help provide a buffer against rising costs.”

The ETF tracks the FTSE Developed Core Infrastructure 50/50 Net Tax Index (100% NZD Hedged). The index includes only companies where 65% or more of revenue comes from core infrastructure activities. 

Top holdings currently include Enbridge (pipelines), American Tower (cell towers), and Transurban (toll roads). 

“You’re getting a broad spread across sectors and regions. You’re not betting on one company or one project,” she says.

How it works

An ETF, or exchange-traded-fund, is a listed investment vehicle that holds a basket of securities. Most ETFs are designed to track a specific index, which in this case represents global infrastructure companies.

Pollock says ETFs offer simplicity and diversification. 

“You don’t need to research individual infrastructure stocks or pick winners. You’re buying the whole index, which gives you broad exposure to the theme.”

ETFs also offer liquidity and transparency. 

“You can buy or sell units on the NZX just like any other share,” she says. “And you can see what’s in the fund, what the fees are, and how it’s performed.”

All Smart ETFs are structured as Portfolio Investment Entities (PIEs), which are taxed at a flat rate of 28%. 

“That’s a big plus for investors who want to avoid complex overseas tax reporting,” Pollock says.

A building block for portfolios

Pollock says infrastructure is increasingly being included in many diversified portfolios. “It’s a growth asset, but it also provides income and stability. It behaves differently from traditional equities, so it can help improve diversification.”

While infrastructure is not immune to risk, she says the ETF structure reduces the need for investors to make active decisions. 

“We’re not saying this is the only way to invest, but it’s a straightforward option if you believe these megatrends are going to shape the future.”

The Smart Global Infrastructure ETF is listed on the NZX under the ticker INF. Investors can buy units via brokers, financial advisers, or online platforms like Sharesies and InvestNow.

“You don’t need to have millions to invest in infrastructure anymore,” says Pollock. “You just need to believe that fibre, energy, and transport will still matter tomorrow.”

Guide: How to invest in Smart ETFs

Discover the Smart Global Infrastructure ETF


The Smart Exchange Traded Funds are issued by Smartshares Limited (Smart). The product disclosure statements are available at smartinvest.co.nz. Investing involves risk. The value of your investments can go down as well as up. Returns are not guaranteed. 

This information is intended to provide a general guide and is based upon, and derived from sources Smart considers reliable. Neither Smart nor NZX Limited, or their respective directors and employees accept any liability for any errors, omissions, negligent misstatements, or for the results of any actions taken, or not taken in reliance on this information.

This information is not a substitute for professional advice. In preparing this information Smart did not take into account the investment objectives, financial situation or particular needs of any particular person. Accordingly, before making any investment decision, Smart recommends seeking assistance from a licensed Financial Advice Provider.

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