This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Roads, Bridges Beget Solid Returns

As people in countries from Canada to China benefit from trillions of dollars spent on new roads, communications and water systems, carve out your share with exchange traded funds.

The SPDR FTSE/Macquarie Global Infrastructure 100 ETF (GII) and the iShares S&P Global Infrastructure Index (IGF) play into so-called infrastructure spending, which is "still in the very early stages," says James Clary, an analyst for the Kensington Global Infrastructure Fund (KGIAX). "Going forward, infrastructure is going to be a vital part of how countries will be able to make themselves competitive."

The Macquarie and iShares funds have declined 25% and 30%, respectively, so far this year, which may make them ideal for entry, given that analysts view infrastructure spending a long-term trend. The S&P 500, in comparison, has dropped about 24 percent. Top holdings include Dominion Resources (D - Get Report), Duke Energy (DUK - Get Report), El Paso (EP), Exelon (EXC - Get Report) and TransCanada (TRP - Get Report).

Steady returns

Connie Luecke, a co-portfolio manager for the Virtus Global Infrastructure Fund (PGUAX), says "there is an attractive risk-return profile for the sector right now."

Luecke said infrastructure investing tends to perform relatively well in up and down markets. "Infrastructure plays have proven to be defensive because cash flows are generally steady," she says. "While there is some weakness in the market right now, there is a lot of room for growth in infrastructure over the next couple of years."

In addition to pressing needs for infrastructure spending globally, low volatility is another key draw. "Infrastructure is an asset class that offers a low correlation to other classes," says Randle Smith, also a co-portfolio manager for the Virtus Fund. "It gives you inflation protection and stable returns."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FWLT $27.52 -3.06%
D $71.51 0.00%
DUK $75.76 0.00%
FLR $56.63 0.00%
EXC $33.89 0.00%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs