Investors can utilize global infrastructure exchange traded funds to generate alternative income solutions and to capture the growth as economies expand.
On the upcoming webcast, Infrastructure Investing for Income and Lower Volatility, Bill Belden, Managing Director at Guggenheim Investments, and Vinit Srivastava, Senior Director at S&P Dow Jones Indices, discuss opportunities in the the global infrastructure industry.
For example, the relatively new Guggenheim High Income Infrastructure ETF (NYSEArca: GHII) takes a different, unique approach to infrastructure. Eschewing traditional market capitalization weighting, GHII looks to solidify its status as an option for income investors by weighing its components on the basis of trailing 12-month yield. The ETF shows a 4.15% 30-day SEC yield. [New ETF Takes the Yield Approach to Infrastructure]
GHII is the first yield-weighted infrastructure ETF to come to market. The new ETF tracks the S&P High Income Infrastructure Index, which is composed of the 50 highest-dividend-paying companies within the S&P Global BMI that operate in the energy, transportation, and utilities sectors. Specifically, utilities is 49.9% of GHII’s portfolio weight, followed by industrials 33.3% and energy 16.8%.
The infrastructure ETF also includes a global tilt, with top country weights including U.S. 19.7%, Australia 14.8%, China 9.4%, Spain 8.7% and Italy 8.1%.