With infrastructure assets poised to thrive in this election year, the AGFiQ Global Infrastructure ETF (GLIF) is an ETF that could deliver for investors.
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.
Investors who want to access global infrastructure investments through a liquid vehicle may consider NFRA as an alternative to being forced into long lock-up periods and high initial investments associated with direct infrastructure exposure
Adding the allure of GLIF in 2020 are the big infrastructure promises candidates are making.
“Michael Bloomberg, the billionaire media mogul and former New York City mayor who is running for U.S. president, released his campaign plan for infrastructure on Wednesday, which proposes to invest more than a trillion dollars in roads, railways, pipes, and telecommunication lines,” reports CityLab.
Go With GLIF
Furthermore, infrastructure exposure could help protect against long-term inflationary risks since most infrastructure operators pass through the cost increases of inflation to users per long-term contracts that typically underpin the infrastructure business models.
With infrastructure, they are looking for areas with a quality bend, exhibiting lower volatility. Traditionally, a lot of infrastructure has been built around components of the Dow Jones. However, the ability to widen has allowed for enhanced diversification of the portfolio, which is a primary goal. Using the quantitative background enables AGFiQ to cast a wider net.
In the political arena, Bloomberg’s infrastructure ambitions are sprawling.
His plan “would establish a set of goals for what the nation’s infrastructure ought to achieve, including benchmarks for job creation, social equity, and accessibility,” according to CityLab. “A national map of all transportation routes would highlight missing links in road, rail, transit, air, and freight networks, and data from both public and private sectors would help drive investment decisions and shape policy.”
An estimated $79 trillion will be spent on global infrastructure from 2016 through 2040, but the investments still fall short by $15 trillion of the required $94 trillion needed.
The Organization for Economic Co-operation and Development is calling for $70 trillion needed in infrastructure spending around the world, but governments have only earmarked $45 trillion, leaving a gap of around $25 trillion that is not going to be covered. Consequently, private spending may need to step in to fill the gap.
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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.