Should You Invest in the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID)?

If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID), a passively managed exchange traded fund launched on November 16, 2009.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Additionally, sector ETFs offer convenient 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 3, placing it in top 19%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $7.77 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. GRID seeks to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index before fees and expenses.

The Nasdaq Clean Edge Smart Grid Infrastructure Index tracks the performance of common stocks in the grid and electric energy infrastructure sector.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.91%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Abb Ltd (ABBN.SW) accounts for about 8.65% of total assets, followed by National Grid Plc (NG/.LN) and Johnson Controls International Plc (JCI).

The top 10 holdings account for about 58.56% of total assets under management.

Performance and Risk

Year-to-date, the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has added about 8.48% so far, and it's up approximately 45.53% over the last 12 months (as of 04/03/2026). GRID has traded between $101.69 and $178.62 in this past 52-week period.

The ETF has a beta of 1.23 and standard deviation of 18.67% for the trailing three-year period, making it a high risk choice in the space. With about 121 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GRID is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index and the Global X U.S. Infrastructure Development ETF (PAVE) tracks INDXX U.S. Infrastructure Development Index. iShares Global Infrastructure ETF has $10.22 billion in assets, Global X U.S. Infrastructure Development ETF has $11.75 billion. IGF has an expense ratio of 0.39%, 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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First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): ETF Research Reports

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

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