PAVE’s sector weights include electrical components & equipment 14.1%, construction & engineering 13.0%, steel 12.8%, railroads 12.8%, trading companies & distributors 11.0%, industrial machinery 9.5%, construction materials 7.8%, construction machinery & heavy trucks 2.8% and specialty chemicals 2.6%.
Top components include Fortive Corp. 3.2%, Nucor Corp. 3.2%, Rockwell Automation 3.1%, CSX Corp 3.1% and Norfolk Southern Corp. 3.1%.
The American Society of Civil Engineers released its quadrennial “infrastructure Report Card” in 2013, revealing a D+ rating for the U.S., according to a note. An estimated to go over $10 trillion by 2040 to repair and modernize the country’s infrastructure.
“In the past few years, we’ve seen the national discourse coming to a bipartisan agreement that the United States needs to heavily invest in rebuilding our national infrastructure. Many strategies, however, are focused on providing exposure to existing infrastructure assets, rather than the companies that should be heavily relied upon to maintain, update, and build new infrastructure projects,” Jay Jacobs, director of research at Global X, said in a note. “Our focus has always been on bringing products to market that offer investors access to untapped market segments, and PAVE is a continuation of this goal.”
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