GHII “was formed back in early 2015 and its assets are allocated across 51 holdings. Among the top 10 holdings are Williams Companies Inc. (WMB), the energy company from Oklahoma and Golar LNG Limited (GLNG) which is engaged primarily in the transportation, regasification, liquefaction and trading of LNG,” according to a Seeking Alpha analysis of infrastructure ETFs.
GHII’s recent outperformance may be attributed to its asset category allocations. Specifically, the infrastructure ETF is the only one of six ETFs in Morningstar’s Infrastructure category that has a mid-cap value tilt.
As growth stocks fell out of favor this year in response to heightened volatility in the earlier months, the value style came back into play. So far this year, value stocks have been outperforming the growth category, with conservative bets gaining prominence as a safety play. Additionally, within the value category, dividend stocks also garnered a lot of attention after a dovish Federal Reserve signaled fewer interest rate cuts this year, prolonging a low-yield environment.
For more information on the infrastructure sector, visit our infrastructure category.
Guggenheim High Income Infrastructure ETF