One of the hallmarks of emerging markets is poor infrastructure – either there’s none, or what’s existing needs serious upgrades. This room for improvement presents a long-term growth opportunity in exchange traded funds (ETFs) that give exposure to this asset class.
Emerging markets account for more than 40% of the world’s population and around one-third of the world’s GDP, but most of these countries lack adequate infrastructure, according to iStockAnalyst. [Making History With Infrastructure ETFs.]
And it’s not just emerging markets, either.
Developed countries with aging infrastructure are in desperate need of a face lift, as well. For instance, the U.S. Bureau of Transportation Statistics declared that one quarter of the more than 600,000 bridges in the United States are “structurally deficient” or “functionally obsolete.”