This is an active ETF that does not replicate a specific index. Instead, the management team selects infrastructure-related stocks from around the world based on its own judgment. It provides diversified exposure across real-asset industries such as utilities, transportation, energy infrastructure and communications networks.

It suits investors who want long-term exposure to the infrastructure theme through active stock selection rather than index tracking.

It is an ETF managed by iShares using an active (actively managed) approach.

The management team sources utility, transportation, energy and communications infrastructure stocks directly across the global infrastructure value chain, and uses an active strategy that adjusts weightings as market conditions change. Because it does not mechanically replicate an index, performance depends on stock selection and the team's management skill.

• Active stock selection without tracking an index
• Diversification across the global infrastructure value chain

Assets under management (AUM) stand at $118.8M, and the expense ratio is 0.60% per year.

Unlike ETFs in adjacent themes, its differentiating factor is that it actively selects across the broad infrastructure universe.

Infrastructure stocks are both defensive in nature and sensitive to interest rates, so their performance diverges depending on the rate environment and the economic cycle. Given the active management approach, stock selection results can produce performance gaps versus the benchmark.

Infrastructure remains a theme that continues to draw interest, supported by long-term investment demand and expectations of expanded policy-driven spending. However, as a new, small category, fund flows may be relatively volatile.

Its strengths are active stock selection and diversification across the infrastructure theme, while its drawbacks are active management costs and the liquidity limitations typical of small funds.

GRID, BOTZ, TAN and others shown in the table are ETFs in adjacent themes such as smart grid, robotics and solar, which partially overlap with infrastructure. More direct infrastructure alternatives include PAVE, which invests in U.S. infrastructure construction, IGF, which holds globally listed infrastructure companies, and NFRA, which tracks a broad infrastructure index, so they can be compared together.

Here are the points to review before investing in BILT. Because it is an active infrastructure ETF, it is wise to check in advance its costs, management approach and fund size, as well as how sensitive infrastructure stocks are to the interest rate environment.

Given the nature of active management, performance can differ significantly from the benchmark depending on stock selection results, and the liquidity of a small fund and interest rate sensitivity act as short-term sources of volatility.

It is an option worth considering for long-term investors who want active exposure to the infrastructure theme beyond index tracking. However, it is advisable to approach it only after fully understanding its costs, fund size and management approach.