What is the best infrastructure ETF in Canada?

The most popular infrastructure ETF in Canada is BMO Global Infrastructure ETF (ZGI) which holds global infrastructure companies including utilities, pipelines, airports, and toll roads. For income-focused investors, Harvest Global Infrastructure Income ETF (HIF) offers higher yield through a covered call strategy. iShares Global Infrastructure ETF (IGF, US-listed) is another strong option with lower MER.

What counts as infrastructure for investing purposes?

Infrastructure investments include essential physical assets that society depends on: utilities (electricity, water, gas), transportation (toll roads, airports, railroads, ports), energy infrastructure (pipelines, transmission lines), communication (cell towers, fibre optic networks, data centres), and social infrastructure (hospitals, schools, government buildings). These assets typically provide stable, long-term cash flows.

Are infrastructure ETFs good for income?

Yes. Infrastructure companies typically pay above-average dividends because they operate regulated or contracted assets with predictable cash flows. Infrastructure ETFs yield 3–5% on average, and covered call strategies can boost yields to 6–8%. They are popular among retirees and income investors as a bond alternative.

Best Infrastructure ETFs in Canada (2026)

For the broader ETF framework before narrowing into infrastructure, start with our ETFs and index funds hub.

Best Infrastructure ETFs Listed on the TSX

ETF	Ticker	MER	Yield	Holdings	Distribution	Focus
BMO Global Infrastructure	ZGI	0.60%	~3.0%	60+	Quarterly	Global listed infrastructure
iShares Global Infrastructure	CIF	0.70%	~3.5%	70+	Monthly	Global infrastructure index
Harvest Global Infrastructure Income	HIF	0.85%	~6.5%	25	Monthly	Infrastructure + covered calls
Dynamic Active Global Infrastructure	DXN	0.77%	~3.5%	30+	Quarterly	Actively managed global

US-Listed Infrastructure ETFs (Accessible from Canada)

ETF	Ticker	MER	Yield	Holdings	AUM	Focus
iShares Global Infrastructure	IGF	0.40%	~3.0%	75	$4B+	Global infrastructure
FlexShares STOXX Global Broad Infrastructure	NFRA	0.47%	~3.0%	200+	$3B+	Broad global infrastructure
SPDR S&P Global Infrastructure	GII	0.40%	~3.5%	75	$1B+	Global infrastructure
Invesco S&P 500 Equal Weight Utilities	RSPU	0.40%	~2.5%	30	$500M+	US utilities equal weight
Global X US Infrastructure Development	PAVE	0.47%	~0.5%	100	$5B+	US infrastructure builders

What Infrastructure ETFs Hold

Sector Breakdown (Typical Global Infrastructure ETF)

Sub-Sector	Weight	Examples	Income Type
Utilities	35–45%	NextEra, Fortis, Enel, Iberdrola	Regulated rates, dividends
Transportation	15–25%	Transurban (toll roads), Aena (airports)	Tolls, user fees
Oil & gas storage/transport	15–20%	Enbridge, TC Energy, Williams	Pipeline fees, long-term contracts
Communication infrastructure	10–15%	American Tower, Crown Castle	Cell tower leases
Railroads	5–10%	CN Rail, Union Pacific	Freight fees
Water	3–5%	American Water Works, Xylem	Regulated rates

Top Holdings in Global Infrastructure ETFs

Company	Ticker	Country	Sub-Sector	Yield
NextEra Energy	NEE	US	Renewable utility	~3.0%
Enbridge	ENB	Canada	Pipelines	~6.5%
American Tower	AMT	US	Cell towers	~3.0%
Transurban Group	TCL	Australia	Toll roads	~4.5%
TC Energy	TRP	Canada	Gas pipelines	~6.0%
National Grid	NG	UK	Electricity/gas transmission	~5.0%
CN Rail	CNR	Canada	Railroad	~2.0%
Aena	AENA	Spain	Airports	~3.5%
Union Pacific	UNP	US	Railroad	~2.0%
Fortis	FTS	Canada	Regulated utility	~4.0%

Why Infrastructure Is Attractive

If you are evaluating infrastructure as part of an income sleeve rather than as a standalone sector bet, compare it with best ETFs for retirement income in Canada.

Characteristic	Benefit
Essential assets	Society cannot function without utilities, roads, pipelines
Regulated/contracted revenue	Predictable cash flows, often inflation-linked
High barriers to entry	Massive capital requirements prevent competition
Long asset lives	Infrastructure lasts 30–100+ years
Inflation protection	Tolls and regulated rates often escalate with inflation
Stable dividends	Reliable income stream from long-term contracts
Low correlation	Infrastructure returns don’t move perfectly with stocks or bonds
Government spending	Global infrastructure spending increasing for decades

Infrastructure ETF Performance

ETF	1-Year	3-Year (Annualized)	5-Year (Annualized)	Yield
ZGI	~10%	~5%	~6%	~3.0%
IGF	~12%	~6%	~5%	~3.0%
HIF	~8%	~4%	~5%	~6.5%
PAVE	~18%	~12%	~15%	~0.5%

Past performance does not guarantee future results.

Global vs Canadian Infrastructure ETFs

Factor	Global (ZGI, IGF)	Canadian-Only (via individual stocks)
Geographic diversification	✅ US, Europe, Asia, Australia	❌ Canada only
Sub-sector diversification	✅ Utilities, toll roads, airports, towers	Limited — mostly utilities + pipelines
Currency exposure	✅ Multi-currency	CAD only
Yield	3.0–3.5%	4.0–6.5% (Canadian infra stocks)
MER	0.40–0.85%	$0 (individual stocks)
Canadian dividend tax credit	Partial (only Canadian holdings)	✅ Full for Canadian stocks

Infrastructure ETFs vs REITs

Factor	Infrastructure ETFs	REITs
Assets	Utilities, pipelines, toll roads, towers	Office, retail, industrial, residential
Revenue predictability	Very high (regulated/contracted)	Moderate (lease-dependent)
Interest rate sensitivity	Moderate	High
Inflation protection	Strong (inflation-linked escalators)	Moderate (lease renewals)
Yield	3–6%	4–7%
Growth potential	Moderate, steady	Variable by sub-sector
Best for	Defensive income, inflation hedge	Real estate exposure, income

For the real estate side of that comparison, see best REIT ETFs in Canada.

Risks

Risk	Detail
Interest rate sensitivity	Infrastructure stocks fall when rates rise (compete with bonds for income investors)
Regulatory risk	Government rate-setting can limit returns
Political risk	International holdings face varying political environments
Concentration	Utilities often dominate global infrastructure ETFs (35–45%)
Currency risk	Global ETFs expose you to USD, EUR, GBP, AUD fluctuations
Slow growth	Infrastructure is a low-growth, income-oriented sector
Capital intensity	Infrastructure requires constant reinvestment in assets
Overlap	If you own ENB, TRP, FTS individually, you’ll duplicate with ETF

Portfolio Integration

Sample Income Portfolio with Infrastructure

Holding	Allocation	Yield	Role
XEQT (All-equity)	40%	~2.5%	Core global equity
ZGI (Infrastructure)	15%	~3.0%	Stable income, inflation hedge
XRE (Canadian REITs)	10%	~4.5%	Real estate income
ZAG (Bonds)	20%	~3.5%	Stability
XDV (Canadian dividends)	15%	~4.0%	Canadian income
Blended	100%	~3.3%	Income + growth

That higher-level mix is easiest to set with asset allocation by age.

Tax Considerations

Account	Best For
RRSP	US-listed infrastructure ETFs (IGF, PAVE) — no US withholding tax
TFSA	Canadian-listed ETFs (ZGI, HIF) — avoid US withholding
Non-registered	Either — Canadian dividends get dividend tax credit

If you plan to use the US-listed versions, pair this with best account type for US stocks and ETFs in Canada and Norbert’s Gambit.