This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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), Duke Energy (DUK), El Paso (EP), Exelon (EXC) and TransCanada (TRP).

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs