The three index funds GLIN, IFRA and TOLL are low-cost FTSE global infrastructure index funds, are hedged to the Australian dollar and charge just 0.14% to 0.20% a year. GLIN and IFRA are 98% the same. Active funds such as GIFL, CIIH and MICH charge about 1% a year. Infrastructure has lagged global shares over three and five years, but it holds almost nothing you already own in VGS, which is why many retirees use it as a steadier growth asset.
What listed infrastructure actually is
Infrastructure ETFs own shares in companies that run essential assets: electricity and gas networks, water utilities, toll roads, airports, railways, pipelines and mobile phone towers. These businesses often have long contracts, regulated prices or near monopolies. People keep using power and roads in a recession, so earnings tend to be steadier than for the average company.
That is the appeal for investors aged 50 to 70. Infrastructure is still shares, so prices move every day, but it has historically behaved differently from technology-heavy global funds. Many of these businesses can also pass inflation through to customers via regulated price rises or toll increases.
Every infrastructure ETF, side by side
| ETF | Style | Fee | Size | Sept flow | 1 year | 3 years |
|---|---|---|---|---|---|---|
| GIFL (Lazard) | Active | 0.98% | $2,998m | +$74.8m | +6.1% | n/a |
| IFRA (VanEck) | Index, hedged | 0.20% | $2,093m | +$55.8m | +5.3% | +41.0% |
| GLIN (iShares) | Index, hedged | 0.15% | $1,864m | +$182.5m | +5.7% | +41.5% |
| CIIH (ClearBridge) | Active, hedged | 1.02% | $1,375m | +$40.6m | +10.5% | n/a |
| CIVH (ClearBridge) | Active, hedged | 1.02% | $1,006m | +$6.5m | +9.6% | n/a |
| CUIV (ClearBridge) | Active, unhedged | 0.97% | $678m | +$1.8m | −0.4% | n/a |
| VBLD (Vanguard) | Index, unhedged | 0.47% | $648m | +$18.2m | −0.8% | +31.4% |
| MCSI (Magellan) | Active | 0.50% | $450m | −$15.8m | +3.5% | +38.1% |
| MICH (Magellan) | Active, hedged | 1.06% | $426m | −$1.3m | +5.7% | +39.8% |
| GHIF (Ausbil) | Active, hedged | 1.00% | $274m | +$5.8m | n/a (new) | n/a |
| PAVE (Global X) | US builders | 0.47% | $40m | +$2.6m | +7.2% | n/a |
| RIIF (Resolution) | Active | 0.70% | $36m | +$2.4m | +12.8% | n/a |
| TOLL (Betashares) | Index, hedged | 0.14% | $29m | +$10.0m | n/a (new) | n/a |
Cumulative total returns to 30 September 2026. Source: TMX Australia monthly funds report. "Hedged" is shown where the fund name says so; check the PDS for the others. PAVE holds US construction and engineering companies rather than infrastructure operators.
Together these funds took about $384 million in September, and GLIN alone took nearly half of it. Most of the money is flowing to the cheap index funds, while the older Magellan funds saw small outflows.
Index funds: GLIN vs IFRA vs TOLL
GLIN, IFRA and the newer TOLL are all FTSE global infrastructure index funds that hedge the currency. GLIN and IFRA share 98.1% of their holdings, and their returns over three years are within half a point of each other. The real difference is cost: TOLL charges 0.14%, GLIN 0.15% and IFRA 0.20%. IFRA has the longest record, back to 2016, and returned +29.4% over five years, or 5.3% a year.
The three cheapest infrastructure ETFs
TOLL is cheapest but very small at $29 million, so check the buy and sell spread before trading large amounts. Compare IFRA vs GLIN →
What's inside: utilities, roads, rail and pipelines
About half of each index fund is utilities, such as NextEra Energy, Southern Company, Duke Energy and the UK's National Grid. Next come transport businesses such as Spain's Aena (airports), Transurban (toll roads) and Union Pacific (rail), then energy pipelines such as Enbridge and Williams. Tower owner American Tower sits in the real estate slice.
Half of every index fund is utilities
GLIN's eight biggest holdings
Here is the useful part for diversification: GLIN shares just 1.9% of its weight with VGS. A global share fund is dominated by technology giants, and infrastructure owners barely register in it. Check the overlap yourself →
Hedged vs unhedged: the 10-point gap
Most infrastructure ETFs are hedged, so currency moves are largely removed. That mattered a lot this year as the Australian dollar rose. ClearBridge runs the same value strategy in two versions: hedged CIVH returned +9.6% and unhedged CUIV returned −0.4%. Unhedged VBLD lost 0.8% while hedged GLIN gained 5.7%, although they follow slightly different indexes and share about 85% of holdings.
Hedged minus unhedged: who won, and by how much
Over five years the gap ran the other way: VBLD returned +33.5% against +29.4% for IFRA, because the Australian dollar was weaker over that stretch. Our guide to hedged vs unhedged ETFs explains why the winner flips.
Returns: steady, but behind global shares
Infrastructure has not kept up with the broad market recently. Over three years, $10,000 in GLIN grew to $14,152 against $16,406 in VGS. Over five years IFRA averaged 5.3% a year against 11.8% for VGS. That reflects a share market led by technology, which infrastructure barely holds.
What $10,000 grew to
"Defensive" also does not mean "never falls". In September the larger infrastructure funds dropped between 3.1% and 6.4% while VGS rose 1.9%. Infrastructure suits investors who want a different mix of growth assets, not a replacement for bonds or cash.
Active funds: are they worth 1% a year?
Active managers such as Lazard, ClearBridge, Magellan and Ausbil pick fewer stocks and aim to beat the index. Some have done so recently: CIIH returned +10.5% over the year, about 5 points ahead of GLIN. But the long-running Magellan funds, MICH and MCSI, have trailed IFRA over three years after fees. And the fee gap is large.
Fees on $100,000 over 20 years
Compare the active and index options head to head: GIFL vs GLIN, GLIN vs MICH, GLIN vs CIIH, GLIN vs MCSI and GLIN vs VBLD.
How retirees use infrastructure
- As part of the growth bucket. A 5 to 10% slice can reduce reliance on the technology giants that dominate global funds.
- For income. Infrastructure companies pay regular dividends, but hedged funds can have lumpier distributions because currency gains and losses flow through.
- Not as a bond substitute. Prices can fall 5% in a month, as September showed. Your cash and bond bucket still does the defensive job.
- Watch for doubling up. If you hold Australian shares, you may already own Transurban, which is about 4.8% of GLIN.
See the full list on our infrastructure ETFs page, read our guide to property and infrastructure ETFs, or our best ETFs for retirees.
Common questions
Is GLIN or IFRA better?
They follow the same index, both hedge currency and share 98% of their holdings. GLIN is cheaper at 0.15% against 0.20%; IFRA is a little larger and has a longer track record back to 2016.
Are infrastructure ETFs a good defensive investment?
They are steadier than many shares, but they are still shares. The larger infrastructure ETFs fell between 3.1% and 6.4% in September 2026. They suit investors wanting a different growth asset, not a substitute for bonds or cash.
What is the cheapest infrastructure ETF in Australia?
TOLL at 0.14% a year, then GLIN at 0.15% and IFRA at 0.20%. TOLL is still very small, so spreads may be wider.
Should I choose a hedged infrastructure ETF?
Hedged funds won by up to 10 points over the past year as the Australian dollar rose, but unhedged VBLD beat IFRA over five years. Many investors pick hedged infrastructure to keep returns steadier in Australian dollar terms.
Joshua Stega is a financial adviser with 20 years' experience and the founder of ETF Adviser. He built ReviewETF to make every Australian ETF easy to find and compare.
General information only. It does not take into account your objectives, financial situation or needs. Consider the PDS and TMD before investing. Past performance is not a reliable indicator of future performance. Data as at 30 September 2026.