“Our GOP Fund has held infrastructure as one of its five policy subthemes since launch last October,” Ben Phillips, EventShares CIO, said in a note. “It has long been our view that infrastructure will be the next major policy item following tax reform. Given the bipartisan support for infrastructure during the 2016 presidential election, we think enough bipartisan support remains in Congress for a bill to pass.”
However, Phillips argued that the $1 trillion price tag on infrastructure spending may be a little price, so the government may have to supplement it through private partnerships that can help save taxpayer’s money.
Over the next one to three years, the Republican majority may be focused on modernizing the country’s infrastructure, and investors may have an opportunity to capitalize on the growth opportunity through infrastructure-related ETFs.
For instance, GOP includes infrastructure-related components like Martin Marietta, Vulcan Materials, United States Steel, KBR, Granite construction and Primoris Services.
For more information on the infrastructure sector, visit our infrastructure category.