The American Society of Civil Engineers calculated that the U.S. will fall $1.44 trillion short of the $3.32 trillion required to invest in infrastructure through 2025.
Municipalities have capitalized on the record low interest rates by issuing $67.3 billion in debt for infrastructure in the five months through May, the most since 2010. Over the past year, states have also increased spending on public construction to the most since 2010.
PAVE “outperformed the broader market in the second half of 2017, posting a 20 percent return since August compared to 11 percent for the S&P 500, as the political rhetoric veered away from health care and focused back on tax reform and infrastructure spending,” according to Bloomberg.
The ETF hit a record high Monday and is up 3.3% to start 2018.
For more information on the infrastructure sector, visit our infrastructure category.