The frenzy over the infrastructure bill that recently passed through the House of Representatives saw the Global X U.S. Infrastructure Development ETF (PAVE) rise 11% over the past month.
Monday’s trading session should see the trillion-dollar infrastructure bill turn into law as U.S. President Joe Biden is expected to sign it. This could push PAVE even higher with the fund already up 36% on the year.
“Three rounds of stimulus checks may have come and gone, but a new $1.2 trillion package approved by Congress last week would fund public works projects that could touch every part of the country,” a CNET article reports. “President Joe Biden is expected to sign the bill into law on Monday, when the House and Senate go back in session.”
The past month, PAVE actually outpaced the S&P 500, highlighting the demand for infrastructure equities while the bill was in the House of Representatives. From general infrastructure, to green energy, to the internet, there are a variety of plays to capitalize on with the eventual signing of the bill.
“The new Infrastructure Investment and Jobs Act of 2021 is designed to tackle big-ticket items such as expanding high-speed internet and building better airports,” the CNET article adds.
Capture Infrastructure Mania With This ETF
PAVE seeks to provide investment results that correspond generally to the price and yield performance of the Indxx U.S. Infrastructure Development Index. The underlying index is designed to measure the performance of U.S.-listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; the production of infrastructure raw materials, composites, and products; industrial transportation; and the production and distribution of heavy construction equipment.
PAVE highlights per the Global X website:
- Compelling need: The American Society of Civil Engineers assigned a letter grade of C- to the state of U.S. infrastructure in its 2021 report card, highlighting the need for investment.
- Multiple catalysts: In addition to the prospect of federal stimulus, infrastructure investments may be catalyzed by state, local, and public-private partnerships on an ongoing basis.
- Unconstrained approach: As the economy evolves, so do infrastructure needs. PAVE seeks to capture this trend by investing in companies that are part of the infrastructure theme, regardless of sector or industry classification.
For more news, information, and strategy, visit the Thematic Investing Channel.