Investigating Big Infrastructure Opportunities

“A 2017 survey of institutional investors responsible for $7 trillion of assets found that 90.3% of asset owners intended to increase their investment in infrastructure over the next 3-5 years, an increase from 65% the previous year,” according to BlackRock.

While he was campaigning, President Donald Trump’s pledge to spend $1 trillion shoring up U.S. infrastructure needs was seen as a potential catalyst for the related exchange traded funds. Still, it could take some time for infrastructure ETFs to see the full benefit of Trump’s still nascent infrastructure plans.

“A deteriorating public infrastructure system threatens the ongoing competitiveness and future economic growth of the U.S.,” said BlackRock. “However, the recognition across both sides of the aisle of the need for bold action provides grounds for optimism. Listed infrastructure equities provide a liquid way to seek both medium term capital appreciation as well as income streams in the long term. Institutional investors have long included infrastructure in their strategic asset allocations. Retail investors may want to consider doing the same.”

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