Investing in Digital Infrastructure with iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT)

The iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) is a diversified portfolio that tracks the performance of the digital infrastructure market. The fund is suitable for investors looking to benefit from the digital infrastructure boom and is rated "buy". It spans communications, data centers, cybersecurity, and renewable energy sectors, providing a mix of resiliency and growth.

The iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) is a diversified portfolio that tracks the performance of the digital infrastructure market. The fund is designed to benefit investors looking to capitalize on the digital infrastructure boom. As of July 2, 2025, IDGT is rated "buy" by analysts, indicating its potential as a strong investment option.

IDGT spans across various sectors, including communications, data centers, cybersecurity, and renewable energy. This diversification provides a mix of resiliency and growth, making it an attractive choice for investors seeking exposure to the digital infrastructure market. The fund aims to capture the growth opportunities presented by the increasing digitalization of the economy and the adoption of artificial intelligence (A.I.) and cloud technologies.

The fund tracks the performance of the S&P Global Digital Infrastructure Index and holds 24 companies, with a significant 75.16% concentration on the top 10 holdings and the top 3 alone representing a concentration of 42%. This high concentration on key holdings indicates the fund's focus on major players in the digital infrastructure sector. Key holdings include Equinix (EQIX), American Tower (AMT), and Digital Realty (DLR), all of which are leaders in their respective fields.

IDGT's expense ratio of 0.39% is lower than that of the Pacer Data & Infrastructure Real Estate ETF (SRVR), which has an expense ratio of 0.55%. This lower expense ratio makes IDGT a more cost-effective option for investors seeking to invest in the digital infrastructure sector.

However, IDGT faces several challenges. Its P/E ratio of 23.99 is significantly lower than that of SRVR, which could indicate undervaluation. Additionally, IDGT's performance has consistently underperformed peers over the past three years, with the fund losing an additional 1% in July 2025.

In conclusion, while the digital infrastructure sector is supported by strong tailwinds, IDGT may not be the most compelling option for investors. Its lower expense ratio and undervaluation suggest that there may be better investment opportunities available. However, investors should consider the fund's diversification and the potential for growth in the digital infrastructure sector.

References:
[1] https://www.ainvest.com/news/digital-infrastructure-etf-srvr-growth-poor-fund-performance-2508/
[2] https://www.stocktitan.net/news/DTCK/davis-commodities-explores-tokenized-commodity-yields-to-scale-1-j20t0dgwhg6y.html