The soup to nuts infrastructure bill calls for massive spending; so what companies will win when government spends?, asks Richard Moroney, editor of Dow Theory Forecasts.

Below is a list of 20 exchange-traded funds (ETFs) that are positioned to benefit from a potential spending spree. The massive scope and uncertain future of the infrastructure bill make it difficult to zero in on a surefire winner or two.

Communication Services SPDR (XLC)
First Trust Dow Jones Internet (FDN)
First Trust Global Wind Energy (FAN)
First Trust NASDAQ Green Energy (QCLN)
First Trust RBA American Indust. (AIRR)
First Trust Water (FIW)
Global X Autonom. & Elec. Veh. (DRIV)
Global X U.S. Infrastruct. Develop. (PAVE)
Health Care Select Sector SPDR (XLV)
Invesco Dynamic Building & Const. (PKB)
Invesco Solar (TAN)
Invesco WilderHill Clean Energy (PBW)
iShares Semiconductor (SOXX)
iShares U.S. Infrastructure (IFRA)
Materials Select Sector SPDR (XLB)
SPDR S&P Transportation (XTN)
VanEck Vectors Low Carb. Ene. (SMOG)
VanEck Vectors Semiconductor (SMH)
Vanguard Communication Svcs. (VOX)
Vanguard Industrials (VIS)

But if you have strong feelings about a strategy — and can accept higher risk — go ahead and carve out a small portion of your portfolio. Three intriguing picks are reviewed below.

First Trust NASDAQ Clean Edge Green Energy (QCLN) favors companies engaged in wind and solar power, advanced batteries, and electric vehicles. It holds 53 stocks, with a 26% weighting in renewable energy equipment and 21% in automakers.

The fund can be volatile. Down 2% so far in 2021, the ETF surged 184% in 2020. The 10-year annualized return is 20%, and its expense ratio is 0.60%.

Holding nearly 100 stocks, Global X U.S. Infrastructure Development (PAVE) focuses on companies involved in raw materials, heavy equipment, engineering, and construction.

The ETF is heavily weighted in electrical products (12% of assets on June 30), railroads (11%), and industrial machinery (10%). The fund, with a reasonable 0.47% expense ratio, has advanced 28% so far in 2021.

iShares Semiconductor (SOXX) focuses on industry heavyweights. Targeting U.S. companies, its three largest positions are Nvidia (NVDA), at 9% of assets; Broadcom (AVGO), at 8%; and Intel (INTC), at 7%.

Holding 30 stocks, the portfolio is 80% invested in semiconductor makers and 20% in semiconductor-equipment providers. The 10-year annualized return of 27% ranks among the top 1% of tech funds.

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