We use infrastructure every day, often without recognizing what we are doing. Infrastructure provides us with our water, electricity, and natural gas. It connects us during a phone call and allows us to get online. It assists us in traveling from place to place via roads, rails, or in the air. Without well-maintained infrastructure, our modern economy wouldn’t function.
For investors looking for an chance to get involved in infrastructure investments, AGFiQ Portfolio Management offers investors the AGFiQ Global Infrastructure ETF (GLIF).
GLIF utilizes a proprietary, multi-factor investment process to seek long-term capital appreciation by investing primarily in global equity securities in the infrastructure industry.
“We’re always looking for an opportunity to invest where there is growth. And that’s because the economies have grown, we’ve gotten more people in cities, and we need the infrastructure to support those people and support the future growth of economies. But it has lagged. And so we need to catch up and spend more on infrastructure overall, and investors have recognized that and seen the opportunity that infrastructure can be as an overall investment in their portfolio,” said Mark Stacey, Head of AGFiQ Portfolio Management.
Most people look to invest directly in infrastructure companies, not realizing that GLIF can offer benefits that direct investing cannot.
“When people think about investing in the infrastructure space they typically think of direct investing, directly in the assets themselves. That said I think there are a lot of benefits to investing in listed infrastructure, or publicly traded infrastructure as well because you can get some important benefits from that listed infrastructure, but also mitigate some of the risk that can come with investing directly in the assets,” Stacey added.
One benefit of using an infrastructure ETF is that it offers enhanced diversification versus individual stock investing. According to the AGFiQ site, “GLIF employs a systematic, factor-driven investment strategy that uses a proprietary sector model and an expanded universe of global infrastructure equities to broaden the opportunity set and seek attractive risk-adjusted returns.”
“Having a listed portfolio of infrastructure stocks provide you greater diversification. You’re investing both globally and bisector. And you’re also getting the benefit of stable cash flow that comes from those companies that invest in infrastructure stocks, and you also get an overall lower volatility with those stocks,” Stacey explained.
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