One of the most positive developments to come out of the election was that both President-Elect Donald Trump and Democrats agreed on the need for infrastructure spending. This may present investors with an overlooked category of investments with great potential for years to come.
Infrastructure companies are businesses that build highways, rail lines, ports, dams and other public works. It's an enormous global market that has languished for years, but that is ripe for expansion. Trump is calling for a U.S. infrastructure financing budget of over $500 billion for new projects -- twice Hillary Clinton's figure.
That could be only for starters, too. A 2013 report from the American Society of Civil Engineers, the latest, graded U.S. infrastructure as a D+. ASME put a price tag on the needed work at over $3 trillion through 2020.
Investors should proceed with caution though. The spending may never happen or may not live up to expectations. Also, they always run the risk in a big industry of picking the stocks of companies that don't get the contracts.
Investors may however, improve their odds by investing in infrastructure mutual funds and ETFs that spread investors' money around. The returns for picking right may be exceptional and relatively secure in the long run because these companies work on long-term projects and the revenue keeps flowing in.
It also helps to find funds that can make any wait bearable and even profitable. Several ETFs stand out for their relatively low cost, modest risk and reasonable yields. They include the Guggenheim S&P High Income Infrastructure ETF (GHII) , iShares S&P Global Infrastructure Index Fund (IGF) and FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) .