In the aftermath of Hurricane Harvey and Hurricane Irma, infrastructure ETFs, including the SPDR S&P Homebuilders ETF (NYSEArca: XHB), iShares U.S. Home Construction ETF (BATS: ITB), and the Materials Select Sector SPDR Fund (NYSEArca: XLB), have been bullish.
Widespread devastation across Texas, the Caribbean and Florida has affected millions of people in the midst of the rare Category 4 and Category 5 hurricanes, Harvey and Irma. In Florida, Irma has left millions without power after the deluge turned streets into rivers.
Unfortunately, the damage is not done yet. Hurricane Irma is still traveling through Florida and is making its way to Georgia. It will take months for the communities hit by these two storms to rebuild entirely.
According to JP Morgan analysts, the combined costs of damages and infrastructure repair of the two hurricanes will reach a record-breaking estimated $260 billion.
As communities begin to rebuild in the coming months, demand in the infrastructure and construction markets will see positive trends. This means growth within infrastructure ETFs is to be expected.