How Do I Invest in Infrastructure Stocks?

But if exchange-traded funds (ETFs ) are more your investment style, there's something in infrastructure for you as well. The SPDR FTSE/Macquarie Global Infrastructure 100 ETF (GII Quote) is an ETF that uses the Macquarie Global Infrastructure 100 Index as a benchmark , while PowerShares Water Resources ETF (PHO Quote) and PowerShares Dynamic Building & Construction ETF (PKB Quote) are a couple of other examples of ETFs that follow infrastructure investments. It seems as though more and more new infrastructure investments are being introduced, so keep an eye out.

How to Analyze an Infrastructure Investment

Overall, analyzing an infrastructure-related company isn't much different from analyzing any other kind of company that deals with large amounts of fixed assets (see "Getting Started: Fundamental Analysis"). However, you should consider consider two things when investing in an infrastructure company: valuation of the actual structure or system, and the real business the company engages in.

Valuation. What value do you put on the Chicago Skyway Toll Road? When it comes to large fixed assets like infrastructure, valuation can be fairly subjective. The only real way around this problem is to make sure that the company you're investing in has experience in the field, and isn't making a colossal mistake when it inks a deal to build, buy, or lease infrastructure. Sticking with big players like Macquarie limits this risk .

Business. Do you know and understand the actual business that the company is engaged in? Let's face it, "infrastructure" can be pretty broadly defined, and it's becoming a really hot investment buzzword. Some companies deal with more risk than traditional infrastructure investments. For example, while a company that owns oil pipelines is involved in infrastructure, its core business is likely oil, and thus is a whole lot more susceptible to the conditions of the oil market.

So there you have it. Those networks of roads, power and phone lines, and yes, even sewers can actually make money for your portfolio . Investing in infrastructure presents a couple of things to look out for, but on the whole, it's pegged by many on Wall Street as a smart investment space for the coming years.

To learn more about infrastructure investing, check out these stories on TheStreet.com:

• Cramer: Infrastructure Surge Should Hold Up Nicely (Video)
• Mutual Funds Show Weakness in Infrastructure
• Concrete Investing: How to Play the Infrastructure Boom

Plus, to search the "infrastructure" portfolios on Stockpickr, click here.