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2 Infrastructure ETFs to Know About
Infrastructure is important
With Joe Biden announcing a $2 trillion infrastructure and jobs package to help reshape America and prepare it for a cleaner energy-orientated future, you have to consider how you can potentially gain exposure to infrastructure as an investor. It is important to note that at this stage, this is only an announcement. There is no official plan or implementation of the $2 trillion infrastructure and jobs package yet. With that being said, infrastructure in the United States is falling apart. Roads, bridges, schools, hospitals, and public utilities will all need major renovations and upgrades over the next few decades. When it comes to gaining exposure to the publicly-traded infrastructure companies that may be involved in these major renovations and upgrades, the two following ETFs will provide you exposure to those companies:
1. Global X U.S. Infrastructure Development ETF (PAVE)
2. iShares U.S. Infrastructure ETF (IFRA)
1. Global X U.S. Infrastructure Development ETF (PAVE)
PAVE is an ETF that seeks to provide investment results that generally correspond to the performance of the Indxx U.S. Infrastructure Development Index. The Indxx U.S. Infrastructure Development Index is designed to track the performance of companies that stand to benefit from a potential increase in infrastructure activity in the United States, including those involved in the production of raw materials, heavy equipment, engineering, and construction. Companies PAVE allow you to gain exposure to include Deere, Parker Hannifin, Eaton, Norfolk Southern, and Kansas City Southern. As of April 7th, 2021, PAVE has a price of $25.11 and an expense ratio of 0.47%. Since its inception on March 6th, 2017, PAVE has provided a total return of approximately 74% and an average annual total return of approximately 15%.
2. iShares U.S. Infrastructure ETF (IFRA)
IFRA is an ETF that seeks to provide investment results that correspond with the NYSE FactSet U.S. Infrastructure Index. The NYSE FactSet U.S. Infrastructure Index is designed to track the performance of companies that have infrastructure exposure and that could benefit from a potential increase in…
