As part of his “Build Back Better” agenda, Biden has big plans; he proposes a whopping $2.6 trillion to be spent on his version of the “Green New Deal,” notes Sean Brodrick, editor of Wealth Wave.
Both the U.S. Federal Reserve and the European Central Bank indicate they will be supporting the economy with loose monetary policy for the next three years.
Meanwhile, the International Monetary Fund is encouraging countries which can afford it to borrow, taking advantage of record low interest rates to promote economic growth. And a new infrastructure boom could light a fire under the world economies when they need it most.
Here are the top three infrastructure ETFs:
1. iShares U.S. Infrastructure ETF (IFRA) tracks the NYSE FactSet U.S. Infrastructure Index, which provides exposure to a range of infrastructure companies, including railroads and utilities, materials and construction companies and more.
The fund’s top three holdings include Olin Corp. (OLN), a manufacturer of chemicals and ammunition products; Fluor Corp. (FLR), a provider of oil and gas infrastructure construction services; and Allegheny Technologies Inc. (ATI), a producer of specialty materials such as titanium, nickel-based alloys, and more.
2. FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) tracks the STOXX Global Broad Infrastructure Index.
This ETF focuses on large-cap companies that derive at least half of their revenue from one or more of the following segments: energy, communications, utilities, transportation and government outsourcing, such as hospitals, prisons and postal services.
The fund is weighted towards North American equities, followed by Japan, Australia, Spain and others. Its top three holdings are Canadian National Railway Co. (CNR), Verizon Communications Inc. (VZ) and class A shares of Comcast Corp. (CMCSA).
3. ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) tracks the Dow Jones Brookfield Global Infrastructure Composite Index.
The focus is on large-cap equities in developed markets with exposure to companies whose primary business is owning and operating infrastructure projects. These companies have high barriers to entry (i.e. “moats”) that limit competition. Companies that supply services, like construction and engineering, are excluded.
Its top three holdings are American Tower Corp. (AMT), a REIT that owns, operates and develops multi-tenant communications real estate; Crown Castle International Corp. (CCI), a REIT that provides access to wireless infrastructure; and Enbridge Inc. (ENB), a Canada-based energy transportation company.