New ETF Lets You Collect Highway Tolls

NEW YORK (TheStreet) -- Late in the emerging market equity boom of the last decade, infrastructure  drew attention for its investment potential. ETF providers now offer funds that invests in that theme. ProShares is the latest company into the space with the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ).

This could make for a great investment.

Estimates for global infrastructure spending range into the trillions of dollars in places like India and Brazil. Plus, $3.6 trillion in infrastructure spending will be needed in the U.S. by 2020.

ProShares' infrastructure fund buys into companies from nine groups within the infrastructure industry, including master limited partnerships, and draws from developed and emerging markets.

TOLZ is limited to 50% in any one country, and that is its weighting to the U.S. That's followed by the UK and Canada at 11% each. None of the other countries has more than a mid-single percentage weighting in the fund.

Oil and gas storage and transportation dominates the fund at 31% of investment, followed by electricity transmission and distribution at 19%, MLPs at 18%, and six other groups with smaller weightings. By rule, MLPs cannot exceed 25% of the fund because above that level would complicate TOLZ's taxation on distributions. Despite the TOLZ symbol, publicly traded toll roads only account for 5.6% of the fund.

The fund's underlying index has 121 holdings. The largest holding is National Grid (NGG), a UK electricity transmission company at 7.9%.

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