Infrastructure: A Bi-Partisan Play

07/28/2016 8:00 am EST

Focus: ETFs

Anyone who drives a car or turns on the tap can see it. The US alone needs to spend $3.32 trillion on infrastructure between now and 2025, notes Peter Krauth in Money Morning.

Indeed, both Hillary Clinton and Donald Trump are talking this up in a big way. It's the one thing they can actually agree on.

For her part, Hillary Clinton has said the United States is "dramatically under-investing in our future," pressing for roads and waterways to be funded.

Her campaign outline suggests she would boost public spending on infrastructure by $275 billion over five years and even establish a national infrastructure bank.

Donald Trump has called America's infrastructure "terrible," saying he'd "start the greatest long-term building project in American history." He proposes a massive trillion-dollar program to rebuild the country's deficient infrastructure.

This trend is global. Japan recently boasted about its new plan to spend $200 billion over the next five years on quality infrastructure "around the world."

China has also confirmed $720 billion in infrastructure spending from 2016 to 2018.

I first recommended the iShares Global Infrastructure ETF (IGF) in March and it is already up by 6.6%. I think it's headed much higher.

Remember - this build out will be worldwide, and this fund gives you unbeatable geographical diversification.

IGF is invested at 35% in the US, 9.5% Australia, 9% Spain, 7.4% Canada, 7% Italy, 6.5% UK, 6% France, 4.5% China, and 3.4% Japan, with the balance sprinkled across a few more emerging and developed countries.

And with an election fast approaching, this is probably the one sector that's best placed to profit from the coming tsunami of pork-barrel politics. Except now you know exactly how to position yourself to benefit.

Subscribe to Money Morning here.

Peter Krauth, Editor of the Money Morning/p>

Related Articles on ETFs

Keyword Image
The Omen
12/07/2017 10:50 am EST

The probability of an equity market correction over the next few months is slim to none, so there co...