AIRR ETF outperforms PAVE ETF by focusing on US small-cap industrials amid reshoring and infrastructure growth.

The First Trust RBA American Industrial Renaissance ETF (AIRR) and the Global X U.S. Infrastructure Development ETF (PAVE) both invest in the US reshoring and infrastructure theme but target different market segments. AIRR focuses on small and mid-cap industrial companies and regional banks, delivering higher returns (62.89% in one year) due to direct exposure to contractors and local lending. PAVE invests in larger-cap industrial blue chips and offers broader diversification with lower risk, returning 36.66% in one year. Investors seeking pure US infrastructure growth with higher risk and reward may prefer AIRR, while those wanting stability and diversification might choose PAVE. A credit shock or construction slowdown would impact AIRR more severely than PAVE.