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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

First Trust ETF Takes Infrastructure Global

No, you are not experiencing deja vu. Yet another infrastructure-related exchange-traded fund has been listed. As its name implies, the First Trust ISE Global Engineering and Construction Index Fund (FLM) tracks an index maintained by the International Securities Exchange, or ISE.

The index targets all the types of infrastructure project you would expect, such as "utilities, transportation, telecommunications, commercial, residential and commerce facilities." The specific companies included in FLM's portfolio perform the "engineering, designing, planning, consulting, project managing and/or constructing of these projects."

Similar to the PowerShares Emerging Market Infrastructure Portfolio (PXR), FLM will be very cyclical, and the types of projects underlying the revenue streams of the component holdings will rely on funding being available for projects.

Infrastructure is important on two levels. Emerging markets looking to build first-generation infrastructure create demand as do established countries like the U.S., whose infrastructure is in desperate need of updating. All told, such infrastructure costs could run into the trillions of dollars. There is no debate as to whether this is needed, but the near-term availability of funding is in question. It makes sense to expect that in terms of the big picture it could be a while before the fund lives up to the back-test results from 2004-06.

FLM is a global fund; the U.S. is the portfolio's largest country weight at 24.49%, followed by Japan at 21.57% and then several countries from Western Europe with mid-single-digit weightings. The fund does a good job at minimizing single-stock risk. The largest holding is Vinci SA from France, with only a 3.11% weight in the fund. FLM will have a 0.70% expense ratio.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
FLM $46.16 1.59%
GII $48.57 -0.19%
PXR $36.19 -0.90%
AAPL $124.43 -1.54%
FB $82.22 -1.18%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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