The trillion-dollar infrastructure plan looking to push through Congress calls for bridging the gap in the digital divide, which could benefit assets like the Global X Data Center REITs & Digital Infrastructure ETF (VPN).
“Lawmakers have bemoaned the nation’s nagging digital divide for years, warning that gaps in broadband internet access in red and blue states alike are hurting Americans’ health, education and job prospects,” a New York Times article explained. “The hulking bipartisan infrastructure package before the Senate this week would try to finally slam it shut.”
To address this, infrastructure plans to bolster internet services is one the bill’s agenda.
“Alongside old-fashioned public works projects like roads, bridges, and highways, senators have included $65 billion meant to connect hard-to-reach rural communities to high-speed internet and help sign up low-income city dwellers who cannot afford it,” the article added further. “Other legal changes seek to stoke competition and transparency among service providers that could help drive down prices.”
Getting real estate investment trust (REIT) exposure can give investors the diversification they need in alternative assets like real estate, but they need to tread lightly. The COVID-19 pandemic changed the landscape of real estate, placing an emphasis on residential over commercial property, but there are still opportunities to be had in certain sub-sectors like data infrastructure.
With a heavier reliance on technology, the need for faster download speeds is even more apparent. Additionally, with the rollout of 5G technology, more infrastructure is necessary to support the digital environment.
An Alternate Play on Commercial Real Estate
VPN offers investors an alternate play on commercial real estate. It gives them a different spin on where commercial property-focused REITs are having to navigate an environment where work-from-home culture is supplanting the need for office space.
As such, VPN seeks to invest in companies that operate data center REITs and other digital infrastructure supporting the growth of communication networks. The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Data Center REITs & Digital Infrastructure Index.
VPN investors can get access to:
- High Growth Potential: VPN enables investors to access high growth potential through companies providing the digital infrastructure for 5G and next generation communication networks.
- REIT Exposure: VPN invests in REITs, among other holdings, an asset class that has historically provided high income potential.
- ETF Efficiency: In a single trade, VPN delivers access to dozens of companies with high exposure to the data center and digital infrastructure theme.
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