August 10, 2007 at 12:00 pm by Tom Lydon
No single exchange traded fund (ETF) exists that is a pure play on infrastructure. Last week’s disaster of the Minneapolis bridge collapse brings to mind how much repair and money is needed to alleviate this shortcoming. The American Society of Civil Engineers (ASCE) rated 27% of the country’s 90,750 bridges structurally deficient or they functionally obsolete. It will cost $9.4 billion a year for 20 years to fix all the problems, reports the ASCE. Trang Ho for Investor’s Business Daily reports that when the government pours trillions of dollars into something, many companies can capitalize.
Some ETFs to bridge government infrastructure spending and your investments include SPDRs Macquerie Global Infrastructure 100 (GII) and the PowerShares Global Water Portfolio (PIO). Although GII holdings are mostly utilities, many are engaged in engineering and development. PowerShares Building and Construction Portfolio (PKB) can be another way to access development, however, 12% is concentrated in consumer and home-building names.
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