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

Core Insights - The First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) is a passively managed ETF launched on November 16, 2009, aimed at providing broad exposure to the Utilities - Infrastructure segment of the equity market [1] - The Utilities - Infrastructure sector is currently ranked 1 within the Zacks Industry classification, placing it in the top 6% of sectors [2] Fund Overview - GRID is sponsored by First Trust Advisors and has accumulated over $2.78 billion in assets, making it one of the larger ETFs in its segment [3] - The ETF seeks to match the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index, which tracks stocks in the grid and electric energy infrastructure sector [3] Cost Structure - The annual operating expenses for GRID are 0.56%, which is competitive with most peer products [4] - The ETF has a 12-month trailing dividend yield of 1.05% [4] Holdings and Exposure - Johnson Controls International Plc (JCI) constitutes approximately 8.48% of total assets, followed by National Grid Plc (NG/.LN) and Eaton Corporation Plc (ETN) [5] - The top 10 holdings represent about 56.89% of total assets under management [6] Performance Metrics - As of July 21, 2025, GRID has increased by about 20.37% year-to-date and approximately 21.75% over the past year [7] - The fund has traded between $101.69 and $142.99 in the past 52 weeks, with a beta of 1.24 and a standard deviation of 20.57% over the trailing three-year period, indicating a high-risk profile [7] Investment Alternatives - GRID holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [8] - Other ETFs in the infrastructure space include IShares Global Infrastructure ETF (IGF) and Global X U.S. Infrastructure Development ETF (PAVE), with assets of $7.53 billion and $8.97 billion respectively [9]