Presidential candidates rarely agree on anything and the approaches to infrastructure offered up by President Trump and former Vice President Joe Biden confirm as much. However, regardless of electoral outcomes, the AGFiQ Global Infrastructure ETF (GLIF) could be a post-Election Day winner.
Biden’s plan includes “talk of rebuilding roads, bridges, green spaces, and water systems as well as improving electricity grids and providing universal broadband for all. There are details on how to build high-quality, zero-emissions public transportation options through flexible federal investments,” reports Logistics Management.
The AGFiQ Global Infrastructure ETF uses a multi-factor investment process to seek long-term capital appreciation by investing primarily in global equity securities in the infrastructure industry. President Trump is pitching a 10-year, $1 trillion infrastructure plan, which is scaled back from his 2016 campaign trail plan. Indeed, costs play a role in determining the fate of domestic infrastructure efforts.
GLIF’s Moment
The infrastructure category has also historically offered higher dividend yields than global fixed-income and global equities, along with greater predictability of long-term cash flows. GLIF may be able to capture the growing demands of economic development that are driving more funding into transport, power, and other systems.
“One commonality the Democrats and Republicans have, however, is lack of any concrete plan to pay for any infrastructure improvements. Raising the federal fuel tax is an obvious solution, but one that has so far escaped both parties in Washington,” according to Logistics Management. “The U.S. Chamber of Commerce this summer sent a letter to Congress urging bipartisan support of improved spending on infrastructure. The Chamber, in a rare display of favoring a tax increase, is even hinting it would support a slight rise in the federal fuel tax—18.4 cents on gasoline, 24.4 cents on diesel, unchanged since 1993.”
That means the White House, regardless of an occupant, may have to step up pressure on states to rehab roads and highways and provide states with the cash to do so.
The infrastructure category has also historically offered higher dividend yields than global fixed-income and global equities, along with greater predictability of long-term cash flows. GLIF may be able to capture the growing demands of economic development that are driving more funding into transport, power, and other systems.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
