A New Way to Invest in Infrastructure
Infrastructure is an asset class that has interested me for some time. I believe it is crucial that a diversified portfolio have some exposure to toll roads and airports around the world because they are likely to hold up well in a U.S. slowdown.
I have written about U.S.-listed Macquarie Infrastructure Trust (MIC) several times in the last couple of years, touting it as my favorite product in the space, but IGF also seems compelling.
It's probably a better way to invest in the sector than another ETF that debuted recently, the SPDR FTSE/Macquarie Global Infrastructure 100 ETF (GII).
I tend to think that infrastructure consists of two big sub groups. First, builders such as Foster Wheeler (FWLT) offer a lot of growth potential, have a high correlation to the stock market and experience a lot of volatility. Second, "maintainers" (as in maintaining a way of life) such as Auckland Airport (AIA.NZ) are steadier in price, have a low correlation to the stock market and usually offer some yield.
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