International government stimulus plans are pouring billions of dollars into infrastructure projects such as new bridges, roads and tunnels. Will related global infrastructure exchange traded funds (ETFs) be a smart choice for investors’ portfolios?
The infrastructure sector has a certain appeal for investors, especially since in the United States alone, $80 billion has been allocated to build or repair new bridges, tunnels and roads.
Murray Coleman for Index Universe reports that sovereign wealth funds around the world have been busy doling out billions more to revive markets outside the United States, leading to prospects of an international infrastructure boom.
Analysts feel that this investment in infrastructure projects both in developed and emerging markets will be a driver of continued economic expansion. ETFs can help give the desired exposure, but with the safety in numbers approach, of a mixed bag of a number of companies. Two to consider are:
- PowerShares Emerging Markets Infrastructure ETF (PXR): up 62.8% year-to-date
- iShares S&P Global Infrastructure Fund (IGF): up 6.8% year-to-date
- SPDR FTSE/Macquarie Global Infrastructure 100 (GII): up 0.7% year-to-date