NEW YORK (TheStreet) -- Reports of a 60-mile-long traffic jam in China that has resulted in more than a week of stop-and-go traffic is raising interest in infrastructure in popular emerging-market nations.
Using ETFs, investors can gain exposure to the companies that will make infrastructure improvements necessary to avoid a repeat occurrence of what happened in China.
Recently, Emerging Global Shares has taken to launching products designed to track companies responsible for building infrastructure in emerging-market nations.
In the opening days of August, the company unveiled the Emerging Global Shares INDXX India Infrastructure Index Fund (INXX). With the introduction of this fund investors, now have the opportunity to access the companies responsible for producing the electricity, roads and bridges necessary for India's growing population.INXX's portfolio is dominated by electricity producers and construction companies, which account for more than 40% of the fund's total index. INXX's index is comprised of 30 holdings with top positions include GAIL India, Larson & Toubro, Jindal Steel, and Bharat Heavy Electricals. Weighting is relatively balanced, with these four positions accounting for less than a quarter of the portfolio's assets. INXX is actually the third installment in EGS' suite of emerging market infrastructure-related ETFs. In 2010, the provider has launched ETFs designed to track the infrastructure industry of both Brazil and China through Emerging Global Shares INDXX Brazil Infrastructure Index Fund (BRXX) and Emerging Global Shares INDXX China Infrastructure Index Fund (CHXX)(CHXX). Emerging markets have become wildly popular as investors look for ways to expand their investing horizons. With the launch of its suite of infrastructure related products EGS has made great strides towards gaining leadership in within the realm of emerging market sector funds. On the surface, the timing of INXX's, CHIXX's, and BRXX's launch appears ideal. As the populations of these nations expand along with their economies, it will be increasingly necessary to have up-to- date infrastructure in place to efficiently move people, electricity, goods and information from place to place. For instance, according to a report from The New York Times , the Indian government plans to spend $500 billion on infrastructure by 2012. Looking to the following five years, this figure is predicted to double. Unfortunately, while the outlook for the emerging market infrastructure industry is optimistic, investors, for the most part, have not made steps to jump into the products offered by EGS. During the six months it has been available, BRXX has caught some attention among investors, currently changing hands nearly 50,000 times each day. CHXX, on the other hand, has struggled as investors harbor concerns over the nation's growth prospects. Currently, its average volume is less than 20,000.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV