This Day On The Street
Continue to site
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

Infrastructure ETFs Target Global Trend

I was recently asked if infrastructure investing should be considered its own asset class. The building and renovation of highways and utilities is going to be an important theme for the next decade, boosting the stocks and exchange traded funds that track related industries.

Put simply, a middle class is slowly emerging in places where there was no middle class and these people will need running water, electricity and cars. Money will be spent to build roads in developing nations and update old infrastructure in the U.S.

Most airport and toll-road stocks are foreign and trade on the pink sheets, which makes them difficult to research and access. However, you can find information if you spend enough time looking.

There are many ETFs and stocks that allow investors to tap into infrastructure spending, each with its own pluses and minuses. There's the SPDR FTSE/Macquarie Global Infrastructure 100 Fund (GII), which invests in foreign utilities; the iShares S&P Global Infrastructure Fund (IGF), a mix of utilities and industrial companies; and the PowerShares Emerging Markets Infrastructure ETF (PXR), which buys mostly materials and industrial stocks. There's also the First Trust ISE Global Engineering and Construction Fund (FLM), which has a very narrow focus on engineering and construction.

Projects like toll roads, airports and railroads usually don't influence the performance of these funds. The Macquarie Infrastructure Trust (MIC - Get Report) also covers this space but it's an actively managed fund that relies on transactions that require financing. Those conditions caused the fund to implode, along with several other Macquarie funds, during the financial crisis.

The SPDR FTSE/Macquarie Global Infrastructure 100 and iShares S&P ETFs are down 8.1% and 1.9% this year, respectively. The PowerShares and First Trust funds, introduced in the past year, have gained 45% and 13%. The S&P 500 Index has advanced 3.8%.
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FLM $47.84 -1.14%
IGF $40.22 0.63%
GII $45.93 0.10%
PXR $30.56 0.33%
MIC $69.89 -0.71%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs