With Election Day right around the corner, President Trump is reiterating a commitment to infrastructure spending and while details remain ambiguous at this point, the political push could give rise to ETFs such as the AGFiQ Global Infrastructure ETF (GLIF).
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.
“President Donald Trump during an address with industry stakeholders touted the administration’s recent aim at advancing infrastructure projects through environmental permitting changes,” reports Transport Topics. “At the 2020 Council for National Policy meeting Aug. 21, the president insisted that permitting reforms would help advance large-scale highway projects.”
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.
Trump, should he be reelected, is likely to continue hammering away at environmental regulation that he views as hurdles to increasing infrastructure investment.
“The administration took aim at the National Environmental Policy Act and announced a final rule meant to modernize and accelerate environmental reviews to enhance efficiency and affordability,” according to Transport Topics. “The move would ideally facilitate a two-year period for completion of certain environmental impact statements. NEPA’s proponents say it plays an essential role.”
With the White House looking to unleash a massive wave of stimulus onto the U.S. economy and in an effort save jobs numbers from sliding, infrastructure could be in style as the coronavirus situation, hopefully, eases soon. Some data points confirm that some of the stimulus packages should be going toward infrastructure.
GLIF also has credibility as an income idea with a dividend yield of 3.39%.
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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.