Recent developments on the global stage, including tensions between the U.S. and Iran and trade tariffs imposed by the U.S., are prompting nations to focus on self-sufficiency in critical sectors such as energy, materials, and infrastructure. This shift presents multiple investment opportunities, particularly through ETFs centered on clean energy, infrastructure, and industrial real estate.
Growing Significance of Clean Energy for National Security
In light of the U.S.-Iran conflict, energy security is becoming a more pressing motivation for the adoption of clean energy, surpassing even climate-related considerations. Nations heavily reliant on fossil fuel imports, where solar energy is not yet a dominant source, are particularly inclined to ramp up solar energy consumption. The European Union, Japan, the United Kingdom, and India fit this profile, while the U.S. and China hold strategic advantages as a net energy exporter and a leader in renewable technology, respectively.
The iShares Global Clean Energy ETF (ICLN) is well-positioned to capitalize on this trend, focusing on companies that facilitate domestic power generation. As of May 1, 2026, ICLN’s portfolio included 24% in renewable electricity, 24% in renewables-related heavy electrical equipment, 16% in electrical components, and 11% in utilities. Notable companies within this ETF include China Yangtze Power Co. and EDP S.A., both rated as 4-STARS (Buy) by CFRA analysts, alongside Plug Power, a hydrogen fuel cell provider, and Goldwind Science & Technology Co., a wind energy company.
Infrastructure ETFs Capture Self-Reliance Theme
Infrastructure ETFs are integral to nations striving for strategic autonomy, with 60% of the iShares Global Infrastructure ETF (IGF) portfolio dedicated to utilities and energy infrastructure, covering power generation, transmission, and oil and gas pipeline operations. CFRA analysts highlight NextEra Energy as a standout, combining utility stability with clean energy growth, crucial as U.S. power demand surges amid AI advancements. In Europe, Iberdrola S.A. benefits from economies of scale in renewable energy deployment, while Aena S.M.E. S.A. maintains a dominant position in the European airport market.
Exploring U.S. Domestic Reshoring and Industrialization
The Pacer Industrial Real Estate ETF (INDS) offers investors a gateway to the U.S. trend of fortifying domestic manufacturing and supply chain resilience. As of May 1, 2026, the ETF posted a year-to-date return of 8.5% and a trailing one-year return of 15.0%, driven by key real estate investment trusts like Prologis, Public Storage, and WP Carey. Prologis, for instance, strategically situates its properties near key transportation hubs, facilitating efficient last-mile delivery. EastGroup Properties and SEGRO Plc, both rated as Buy by CFRA, further bolster this ETF’s appeal.
Looking Ahead
Investors keen on the self-reliance theme should stay attuned to policy shifts and regulatory changes that signal a move towards energy and trade autonomy. Initiatives such as Canada’s Strong Fund, announced by Prime Minister Mark Carney on April 27, 2026, reflect this trend. Additionally, national funding, industrial policies favoring domestic manufacturing, and the strategic use of natural resources as bargaining tools could reinforce the self-reliance movement.
Indicators of potential opportunities include spending on grid modernization, the share of renewable energy in domestic electricity consumption, and strategic petroleum reserves. Infrastructure project awards and capital expenditure announcements by firms in the sector may also provide insights into ETF performance.
Original Story at www.wealthmanagement.com