Lazard Global Listed Infrastructure ETF (GIFL): A Strategic Inflation-Resilient Asset Class for 2025

In the volatile and inflationary financial climate of 2025, investors are increasingly turning toward asset classes that combine stable income streams with robust inflation protection. Among these, infrastructure equities have emerged as a compelling choice. The Lazard Global Listed Infrastructure ETF, trading under the ticker GIFL on Cboe, epitomizes this strategic appeal. By investing in a carefully curated portfolio of global infrastructure operators, GIFL offers investors an inflation-resilient, dividend-yielding, and diversification-enhancing vehicle well-suited for today’s complex macroeconomic environment.

Understanding GIFL: Infrastructure as an Asset Class

Launched initially as a mutual fund in 2005 and recently made available as an ETF, Lazard’s Global Listed Infrastructure Fund focuses on equities of companies operating essential infrastructure assets worldwide. These include utilities such as electricity and water networks, transportation infrastructure like toll roads and railways, and energy infrastructure, including pipelines and storage facilities.

Unlike many traditional equity sectors, infrastructure is characterized by:

• Predictable, long-term cash flows: Many infrastructure assets operate under regulated frameworks or long-term contracts that ensure steady revenues.
• Pricing power and inflation linkage: Contracts often include inflation adjustments, allowing companies to pass increased costs onto customers.
• Lower sensitivity to economic cycles: As providers of essential services, infrastructure companies tend to exhibit lower earnings volatility during economic downturns.

These factors contribute to infrastructure’s reputation as an inflation hedge and a source of stable income, making GIFL particularly attractive in an environment where inflation remains elevated near 4% and market volatility persists.

GIFL’s Portfolio Composition and Yield Profile

GIFL employs a stringent definition of “preferred infrastructure,” emphasizing quality, sustainability, and durability of cash flows over mere asset ownership. This focus distinguishes the fund from broader infrastructure ETFs and fosters lower overall volatility and enhanced risk-adjusted returns.

Geographic and Sectoral Diversification

The fund holds equities across developed and emerging markets, providing geographic diversification that mitigates country-specific risks. Sector exposure typically includes:

• Utilities: Electricity, gas, and water providers with regulated returns.
• Transportation: Toll roads, ports, airports, and rail networks with contractual revenue streams.
• Energy infrastructure: Midstream companies operating pipelines and storage, often under fee-based contracts.

This multi-sector and geographic spread reduces idiosyncratic risk and adds resilience against localized economic shocks.

Dividend Yield and Income Stability

Infrastructure equities are known for their steady dividend payouts. GIFL’s holdings typically offer attractive dividend yields compared to broad market equities, appealing to income-focused investors. The fund’s emphasis on cash flow sustainability supports consistent dividend distributions even amid inflationary pressures.

Inflation Protection and Volatility Management

Inflation Resilience Through Contract Structures

A key advantage of infrastructure assets lies in their embedded inflation protection mechanisms. Many contracts governing utilities and toll roads include clauses that adjust revenues based on inflation indices. This pricing power allows companies within GIFL’s portfolio to maintain or grow cash flows in real terms despite rising input costs.

Lower Volatility Relative to Broader Equities

Due to the essential nature of their services and regulated earnings, infrastructure companies generally experience less earnings volatility. GIFL’s focus on preferred infrastructure enhances this characteristic, offering investors a portfolio with smoother return profiles compared to cyclical sectors.

Strategic Role of GIFL in a Multi-Asset Portfolio

Incorporating GIFL into a global multi-asset portfolio provides several strategic benefits:

• Diversification: Infrastructure’s low correlation with traditional equity and fixed income markets helps reduce overall portfolio volatility.
• Yield Enhancement: Its stable dividend payouts complement income from bonds and dividend-paying equities, crucial in a low real-yield environment.
• Inflation Hedge: Inflation-linked cash flows guard portfolios against purchasing power erosion.

Given ongoing geopolitical uncertainties and inflation elevated around 4%, GIFL offers an attractive means to balance growth, income, and risk mitigation.

Expert Perspectives: Lazard’s Preferred Infrastructure Focus

Lazard’s rigorous selection criteria distinguish GIFL from peers. The firm’s emphasis on “preferred infrastructure” — assets characterized by durable and predictable earnings, pricing power, and contractual or regulatory protection — seeks to optimize risk-adjusted returns over full economic cycles.

This approach rejects infrastructure companies with volatile cash flows or those overly exposed to commodity price swings, focusing instead on businesses with defensible revenue streams.

A Lazard portfolio manager recently noted:

“Our strict definition of preferred infrastructure is central to the success of GIFL. It allows us to deliver a steady income stream, inflation protection, and reduced volatility that investors need in today’s uncertain environment.”

Performance and Market Positioning

While GIFL is relatively new as an ETF, the underlying fund’s long history since 2005 provides a track record of navigating inflationary periods successfully. Historically, the fund has delivered competitive total returns, outperforming broad infrastructure indices by focusing on quality and sustainability.

In 2025, with global inflation at approximately 4%, GIFL’s inflation-linked revenues and dividend stability position it favorably compared to more interest-rate sensitive fixed income assets, which face ongoing yield curve volatility.

Considerations for Investors

Expense Ratio and Liquidity

GIFL’s expense ratio is competitive for an actively managed infrastructure fund, reflecting the specialized expertise required for deep fundamental analysis and security selection in this niche. Liquidity on Cboe is moderate but improving as the ETF gains traction among institutional and retail investors.

Suitability

GIFL is well suited for:

• Investors seeking inflation protection beyond traditional fixed income.
• Those looking to enhance portfolio income with relatively stable dividends.
• Portfolios aiming to diversify away from cyclical equity sectors and interest-rate sensitive bonds.

It complements both growth-oriented and conservative portfolios by offering an intermediate risk-return profile with downside protection.

Conclusion

In 2025’s persistently inflationary and volatile market environment, the Lazard Global Listed Infrastructure ETF (GIFL) represents a strategic addition for investors aiming to safeguard income and capital. Its disciplined focus on preferred infrastructure companies worldwide delivers a blend of inflation resilience, dividend yield, and diversified exposure that enhances portfolio stability and long-term growth potential.

By anchoring portfolios with GIFL, investors can better navigate the challenges of rising prices and geopolitical uncertainty while maintaining exposure to essential global infrastructure assets whose value and cash flows endure over time.

References:

• Lazard Global Listed Infrastructure Fund (GIFL): Cboe

Published July 14, 2025