---
title: "Infrastructure ETFs lagged stocks, and large construction funds fell hardest in the quarter"
url: "https://etf.net/news/infrastructure-etfs-lag-stocks-2026-10-20"
published_at: "2026-10-20T14:51:36.795Z"
updated_at: "2026-10-20T14:51:36.795Z"
byline: "ETF.net Research"
---

# Infrastructure ETFs lagged stocks, and large construction funds fell hardest in the quarter

The median fund was still up for the year through Oct. 19, but the large pipeline fund rose in the third quarter while construction funds fell by double digits.

By ETF.net Research. Published Oct 20, 2026.

Infrastructure funds lagged the stock market over the year through Oct. 19.

In the third quarter, the large pipeline fund rose and every other fund with more than $2 billion fell. Among them, the construction funds fell the hardest.

The median of 34 U.S.-listed funds in the infrastructure category returned **5.7%** in total over that year. The State Street SPDR S&P 500 ETF, SPY, returned 16.6% in total.

From the June 30 close to the Sept. 30 close, the median total return was **−6.8%**. SPY gained 2.4% in total.

Three funds hold more than two-thirds of the $47.4 billion in the category.

The Global X U.S. Infrastructure Development ETF, PAVE, the largest at $13.6 billion, returned 12.8% over the year, ahead of the other two, and lost 10.9% in the quarter.

The iShares Global Infrastructure ETF, IGF, at $10.5 billion, returned 4.7% over the year and lost 7.6% in the quarter.

The First Trust RBA American Industrial Renaissance ETF, AIRR, at $8.5 billion, returned 3.5% over the year, near IGF, and lost **22.5%** in the quarter.

Chart: The three largest funds **lagged SPY** for the year, then all fell

## Construction funds and owner funds hold different companies

Some of these funds own the companies that build infrastructure. Others own the companies that operate it.

PAVE owns the companies that do the building. Global X said that on Sept. 30 it was 73.4% industrials and 21.9% materials, and 3.2% utilities. Its largest positions include Emerson Electric, Quanta Services and Eaton, equipment makers and contractors.

IGF owns the companies that operate the assets. It holds toll-road, airport and utility companies, including Transurban, Aena, NextEra Energy and Iberdrola. iShares said that on Oct. 9 the fund was 40.7% utilities, 38.9% transportation and 20% energy.

The iShares U.S. Infrastructure ETF, IFRA, at $4 billion, owns both. On Oct. 15, iShares reported utilities at 41.9% and industrials at 35.8%. It returned 8.4% over the year, between PAVE and IGF, and lost 12.3% in the quarter.

AIRR tracks small and midsize U.S. industrial companies, including construction firms.

## Data-center builders gave back first-half gains

Morningstar wrote on Oct. 2 that data-center construction firms gave back some of their triple-digit first-half gains in the third quarter, with Sterling Infrastructure's shares down 41% and Argan's down 53%. Both are holdings of AIRR.

BlackRock had already described what lifted that kind of company. In its shareholder report for the year ended March 31, it said construction and engineering companies were the largest contributors to IFRA. Investment in artificial intelligence infrastructure, particularly data centers, had raised demand for electrical equipment and for heating, ventilation and air-conditioning systems.

IGF lost 7.6% in the quarter, about the median, a smaller loss than the construction funds took. The State Street SPDR S&P Global Infrastructure ETF, GII, with less than $1 billion, lost 7.6% as well.

The FlexShares Northern Trust STOXX Global Broad Infrastructure ETF, NFRA, with about $3 billion, lost 2.2%. That was the smallest loss among funds with more than $2 billion, milder than the 7.6% at IGF and GII.

The Global X MLP ETF, MLPA, holds pipeline master limited partnerships, including Energy Transfer and Enterprise Products Partners. With $2.3 billion, it gained 2.2% in the quarter and 23.1% over the year. It was the only fund in the category with more than $2 billion to gain in the quarter.

Chart: Only **MLPA** gained among infrastructure funds with more than $2 billion

The sector weights are how a holder tells these funds apart. Almost all industrials and materials, as in PAVE, means the companies doing the building. Utilities, transportation and energy, as in IGF, means the companies operating the assets. A large stake in each, as in IFRA, means both. Pipeline partnerships, as in MLPA, are a separate case.

Source: etf.net, https://etf.net/news/infrastructure-etfs-lag-stocks-2026-10-20. Please cite the page URL.