Pure-play infrastructure companies are the owners and operators of infrastructure assets, such as toll roads, airports, pipelines and communication towers. With their near monopolistic positions, continual demand and limited sensitivity to economic cyclicality, these companies, as a group, have had stable, predictable cash flows, attractive yields and are poised to benefit from increasing global infrastructure spending. What are some of these companies, and what kind of services do they provide? Let’s take a look.
Cheniere Energy, Inc. (Ticker: LNG) | Headquarters: Houston, TX
- International energy company that is the leading producer of liquefied natural gas (LNG) in the United States.
- Became the first company in February 2016 to ship LNG from a commercial facility in the contiguous United States.
- Approximately 80 percent of its expected aggregate LNG production capacity is contracted through long-term agreements with 18 investment-grade customers throughout the world.
Transurban (Ticker: TCL-AU) | Headquarters: Melbourne, Australia
- Leading owner and operator of toll roads, operating 17 toll roads in Australia and North America.
- Is expanding internationally with 100% stake in I-95 and I-495 Express Lanes in the Washington, DC area and 100% equity interest in Montreal-area’s A25, to be held until 2042.
American Tower Corporation (Ticker: AMT) | Headquarters: Boston, MA
- Leading independent owner, operator and developer of multi-tenant communication towers, which is poised to potentially benefit from rapidly increasing wireless data usage, including 5G.
- Holds approximately 171,000 communication sites in the U.S. and internationally that produce long-term and recurring revenue streams.
Aqua America (Ticker: WTR) | Headquarters: Bryn Mawr, PA
- Provides wastewater, drinking water and water-utility services to more than 3 million people in the U.S., and also provides wastewater-only services to an additional 250,000 people.
- Has made over 370 acquisitions since 1995 and treats over 82 billion gallons of water each year.
About TOLZ and the Dow Jones Brookfield Global Infrastructure Composite Index
The ProShares DJ Brookfield Global Infrastructure ETF (Ticker: TOLZ) is the only ETF focused on “pure play” infrastructure companies. Unlike other infrastructure strategies, it does not include construction, consulting or other auxiliary firms. TOLZ follows the Dow Jones Brookfield Global Infrastructure Composite Index. The index consists of companies domiciled globally whose primary business is the ownership and operation of infrastructure assets.
Dow Jones Brookfield Global Infrastructure Composite Index Holdings As of June 30, 2019
Index constituents as of 6/30/2019. Subject to change. TOLZ intends to hold securities in approximately the same proportion as the index, but there is no guarantee it will. View the complete list of TOLZ’s daily holdings.
- Get more information about TOLZ.
Sources: Cheniere.com, Transurban.com, AmericanTower.com, and AquaAmerica.com
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