Infrastructure investing, once a niche corner of the markets, is gaining traction among advisors looking to diversify client portfolios with income-producing assets that offer both defensiveness and long-term growth. BlackRock is leaning into that momentum with the launch of the iShares Infrastructure Active ETF (BILT)—its first actively managed ETF in the infrastructure space.
The new fund expands BlackRock’s $10 billion passive infrastructure ETF lineup, which includes the iShares Global Infrastructure ETF (IGF), the iShares U.S. Infrastructure ETF (IFRA), and the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT). This move also builds on BlackRock’s acquisition of Global Infrastructure Partners (GIP) in 2023. With the integration of GIP, BlackRock now manages approximately $183 billion in infrastructure-related assets.
BILT is managed by Balfe Morrison, head of listed infrastructure for BlackRock’s Global Real Asset Securities Group. Morrison brings seven years of experience running the firm’s listed infrastructure strategies and argues that an active approach can help advisors identify opportunities that passive indexes miss. “We’re infrastructure specialists,” Morrison says. “That specialization allows us to uncover alpha in a space where active management has historically outperformed.”
The fund holds between 50 and 60 equities and charges a 60-basis-point expense ratio. Its core holdings span sectors such as utilities, energy, transportation, data infrastructure, and industrial logistics—areas experiencing strong secular demand due to AI adoption, growing digital data consumption, and shifting global supply chains.
At launch, utilities represent the fund’s largest allocation, followed by transportation and oil and gas. Roughly two-thirds of assets are concentrated in North America, with Morrison citing the region as a key source of infrastructure expansion and modernization. However, he also notes compelling opportunities in Europe and Asia as global infrastructure needs accelerate.
While infrastructure is typically viewed as a defensive sector offering attractive income—yields currently average around 3%—BlackRock is positioning BILT to offer more than just yield. “You still get income and downside protection,” Morrison says, “but there’s also a meaningful opportunity for capital appreciation in today’s environment.”
Jay Jacobs, head of U.S. equity ETFs at BlackRock, says infrastructure is becoming a more common core allocation in model portfolios. For financial advisors managing income-focused or pre-retiree portfolios, the sector checks several boxes: steady income, inflation hedging, low correlation to broader equities, and long-term growth linked to structural shifts in global trade and digital infrastructure.
“Infrastructure is increasingly relevant for advisors helping clients prepare for retirement,” Jacobs says. “You’re getting exposure to critical global trends like AI and supply chain transformation, while also gaining diversification, income, and lower overall volatility.”
