INFR is seen as a way to bring institutional infrastructure investments to financial advisors and retail investors, Wahl said.
Wahl explained that the underlying holdings are comprised of a middle ground between conservative, long-term government-backed projects and high risk competitive assets like energy and exploration. Additionally, the fund strategy is geared toward CPI and leveraged to GDP as a way to pick out areas from economically sensitive sectors and more regulated or defensive sectors.
The underlying portfolio will include essential assets for a functioning economy, like airports, rails, roads, electrical and gas lines, water, sewage, communications and social services.
As of November 30, 2016, the underlying index’s weights include electric utilities 28.6%, railroads 20.2%, oil & gas storage & transportation 17.5%, multi-utilities 11.9%, highways & railtracks 8.4%, airport services 6.5%, cable & satellite 2.4%, water utilities 1.8% and gas utilities 1.8%.
The ETF also provides international exposure, with country weights including U.S. 37.9%, Canada 12.9%, Australia 11.0%, U.K. 6.8%, Spain 6.5%, Japan 5.9%, France 4.6%, Italy 3.8%, Hong Kong 2.6%, Malaysia 1.0%, Switzerland 1.0%, Mexico 0.8%, China 0.7% and Chile 0.7%.
For more information on the infrastructure sector, visit our infrastructure category.