Investors may access the growing space through a recently launched Guggenheim High Income Infrastructure ETF (NYSEArca: GHII), which has a 4.15% 30-day SEC yield.
“While there are other infrastructure ETFs out there – when we created GHII, we wanted to focus on the yield component. Yield weighting solves the issue that many investors have today – getting income,” Belden added. “Now investors can get infrastructure exposure without sacrificing total return.”
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%.
Sub-industries include oil & gas storage & transportation 29.9%, electric utilities 24.5%, multi-utilities 14.1%, highways & railtracks 10.8%, gas utilities 5.5%, airport services 4.5%, marine ports & services 4.3%, independent power producers & energy traders 3.1%, water utilities 2.5% and renewable electricity 0.7%.
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%.
Financial advisors who are interested in learning more about the infrastructure space can listen to the webcast here on demand.