Recent geopolitical events such as the U.S.-Iran conflict and U.S. trade tariffs are likely to result in countries emphasizing self-reliance in strategic areas like energy, materials and infrastructure. Investors have multiple routes to invest in this emerging trend, including clean energy-, infrastructure-, and industrial-real-estate-focused ETFs. The iShares Global Clean Energy ETF (ICLN) is likely to benefit from increased investment in renewables as countries look to reduce dependence on imported fossil fuels. Infrastructure ETFs like the iShares Global Infrastructure ETF (IGF) invest in utility and energy infrastructure stocks that are critical to energy and national security. In the U.S., companies are increasingly focused on domestic manufacturing and near-shoring, which will benefit ETFs like the Pacer Industrial Real Estate ETF (INDS).
Clean Energy Becomes a Security Imperative for Countries
Due to the U.S.-Iran conflict, we think clean energy demand will be driven by energy security motivations rather than just the climate agenda. This will be particularly true for countries that currently have high import dependency for fossil fuels and where solar has a relatively low share of total electricity consumption. As shown in Table 2, the European Union\, Japan, the United Kingdom and India are all likely to be growing consumers of solar, as they all fit the profile of energy-importing regions where solar has a low share of electricity consumption. The U.S. and China are strategically better positioned due to the former’s status as a net energy exporter and the latter’s as a leader in renewables-related technology and production.
ICLN offers targeted exposure to the energy self-reliance theme by investing in companies that enable countries to generate power domestically. As of May 1, 2026, 24% of ICLN’s exposure was in renewable electricity, with another 24% in renewables-related heavy electrical equipment, 16% in electrical components, and 11% in utilities. In the Utilities sector, ICLN has exposure to stocks like China Yangtze Power Co. and EDP S.A., both of which currently have 4-STARS (Buy) ratings from CFRA analysts. In the Industrials sector, constituents with Buy ratings from CFRA include hydrogen fuel cell provider Plug Power and wind energy company Goldwind Science & Technology Co. This dual exposure to the builders and operators of renewable energy systems positions ICLN to benefit as nations prioritize energy security through diversified, locally-generated power sources that reduce geopolitical vulnerability.
Global Infrastructure Theme Also Captures Self-Reliance Trend
Infrastructure ETFs hold the critical assets that nations prioritize when pursuing strategic autonomy. For example, 60% of IGF’s portfolio is concentrated in utilities and energy infrastructure, including power generation, transmission, and the operation of oil and gas pipelines and terminals (see Table 3).Â
CFRA’s analysts view NextEra Energy as offering a differentiated combination of regulated utility stability and long-duration clean energy growth, positioning the company as a best-in-class earnings compounder. It has emerged as a critical energy partner to hyperscalers and industrial customers as U.S. power demand accelerates and AI becomes increasingly important for national competitiveness. Similarly, in Europe, Iberdrola S.A. has thrived with strong economies of scale in renewable buildout. CFRA continues to see improved margins from IBE, as one of the leading renewable operators in Europe, owing to better economies of scale from additional renewable capacity. In the Industrials sector, Aena S.M.E. S.A., the world’s largest airport operator with 69 airports under management, is also well positioned due to its high margins and dominant position in the expanding European travel market.
Accessing the Trend of U.S. Domestic Reshoring and Industrialization
CFRA views INDS as a unique vehicle to access the theme of U.S. firms focusing on enhancing domestic manufacturing capacity and making their supply chains more resilient. The ETF had a total year-to-date (YTD) return of 8.5% and a trailing one-year return of 15.0% as of May 1, 2026. INDS’s YTD return has been primarily led by strong performances from key real estate investment trusts: Prologis, a global leader in logistics real estate, with an 10.5% return; Public Storage, a self-storage REIT, with a 17.9% return; and WP Carey, another REIT, with a 13.5% return.Â
PLD’s real estate portfolio is strategically located near major transportation hubs and urban centers, enabling tenants to meet the rising demand for faster delivery times through efficient last-mile delivery. CFRA also has a Buy rating on INDS constituent EastGroup Properties, a REIT that owns industrial properties in coastal regions and the Sun Belt. A non-U.S. holding with a CFRA Buy rating is SEGRO Plc, which develops, owns, and manages a portfolio of warehousing and logistics property across Europe and the U.K.
Looking Ahead
Investors interested in the national self-reliance theme should monitor policy and regulatory catalysts that indicate a shift toward energy and trade autonomy. This could include the establishment of sovereign funds to invest in infrastructure, such as the Canada Strong Fund announced by Prime Minister Mark Carney on April 27, 2026. Other initiatives could include national funding or industrial policy that favors domestic manufacturing, critical infrastructure, and energy projects. An increase in the use of critical natural resources as bargaining chips by countries would reinforce this trend of self-reliance.
Other metrics that reflect potential opportunity in this theme include grid modernization spending, renewable energy as a percentage of domestic electricity consumption, and days of strategic petroleum reserves held by countries. Infrastructure project awards and capex announcements by firms in the space could also serve as leading indicators of ETF performance in this category.Â
