“You have budget surpluses in a number of states, and extremely low yields available in the market right now allow them to borrow at attractive rates,” R.J. Gallo, head of the municipal bond group at Federated Investors, told Bloomberg. “It all adds up that you’re seeing more new-money financing and more public construction. The muni market can certainly handle it.”

Municipalities have capitalized on the record low interest rates by issuing $67.3 billion in debt for infrastructure in the five months through May, the most since 2010. Over the past year, states have also increased spending on public construction to the most since 2010.

“Recent history tells us that simply having low interest rates is not going to be what drives cities to take on new debt,” Christiana McFarland, director of research in Washington at the National League of Cities, told Bloomberg. “The looming threat of infrastructure needs is certainly putting cities in a position to do everything they can to take on those projects now.”

Related: A Defensive Sector ETF with Attractive Yield Opportunities

Investors interested in gaining exposure to the broad infrastructure sector can take a look at a number of ETF options available.

Infrastructure ETFs:

  • iShares Global Infrastructure ETF (NYSEArca: IGF)
  • SPDR FTSE/Macquarie Global Infrastructure (NYSEArca: GII)
  • iShares S&P Emerging Markets Infrastructure Index Fund (NYSEArca: EMIF)
  • ProShares DJ Brookfield Global Infrastructure ETF (NYSEArca: TOLZ)
  • FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA)
  • PowerShares Global Emerging Markets Infrastructure Portfolio (NYSEArca: PXR)
  • Deutsche X-trackers S&P Hedged Global Infrastructure ETF (NYSEArca: DBIF)
  • Guggenheim High Income Infrastructure ETF (NYSEArca: GHII)

For more information on the infrastructure sector, visit our infrastructure category.