Related: New Opportunities in ETFs: Listed Infrastructure
The infrastructure asset category is also a good portfolio diversifier as the investment is relatively uncorrelated to the equity markets. In tough and good times, people will still utilize the basic infrastructures of an well-functioning economy, which also makes infrastructure stocks a decent defensive play.
TOLZ is home to non-traditional asset classes such as high-yielding master limited partnerships (MLPs), toll roads and oil and gas storage and transportation firms. MLPs are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around.
The weighted average market value of the stocks in TOLZ is $10.7 billion.
For more information on the infrastructure sector, visit our infrastructure category.