INFR tracks the performance of the RARE Global Infrastructure Index, which is comprised of global infrastructure-related equities. The underlying index will also screen for other factors, including a liquidity filter for companies with a minimum of $500 million market capitalization and a 1-year average daily value traded of $2 million, along with those ranked from the highest dividend yield and cash flow yield. Components are then weighted by market capitalization and free float, RARE exposure score, price volatility and region.
“The universe of securities used for INFR is inspired by RARE’s active strategies, and the firm tries to invest as close as possible to the actual assets – so investing in a road versus a construction company building the road,” according to Legg Mason.
The ETF can include utilities infrastructure sectors, including electric utilities, gas utilities, independent power producers & energy traders, multi-utilities, renewable electricity and water utilities. Additionally, the fund may hold economically sensitive infrastructure sectors, including airport services, cable & satellite, highways & rail tracks, marine ports & services, oil & gas storage & transportation, railroads, and specialized real estate investment trusts.
INFR Expense Ratio Lowered
Potential investors will also find the option cheaper to trade in the future as Legg Mason is lowering the expense ratio on INFR from 53 bps to 45 bps. The firm also added a contractual fee waiver to further reduce the fund’s fees from 45 to 40 bps until February 29, 2020. This makes INFR tied for lowest cost ETF in the global infrastructure space.
For more information on the infrastructure sector, visit our infrastructure category.