PAVE the Way for a Stronger Portfolio with a Global X ETF | ETF Trends

When Joe Biden takes the helm on January 20, ETF investors can count on prevailing trends they can access with thematic funds. One place to look is infrastructure, with funds like the Global X U.S. Infrastructure Development ETF (PAVE) standing out as strong options.

PAVE seeks to provide investment results that correspond generally to the price and yield performance, of the Indxx U.S. Infrastructure Development Index. The fund invests at least 80% of its total assets in the securities of the underlying 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; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.

PAVE is up over 30% within the past year:

PAVE Chart

The fund’s momentum is apparent when using a relative strength index (RSI) indicator. We can already see a growth in volume during November, and an additional spike to start the new year.

PAVE is up 9% to start 2021:

PAVE Chart

Biden’s $2 Trillion Infrastructure Plan

Investors can continue to ride the infrastructure wave with PAVE, which has risen almost 30% since Election Day. PAVE also has over $952 million in net assets and climbing.

“Infrastructure has been at the top of Joe Biden’s plan since the beginning. He’s had a $2 trillion plan that’s going to invest in roads, highways, airports, ports as well as digital infrastructure and clean tech,” said Jay Jacobs, senior vice president and head of research and strategy at Global X ETFs. “This has been a key pillar of Joe Biden’s plan for economic revival. Now he has the tools to do that with Democrats owning the executive branch and the legislative branch.”

“We’ve seen about $500 million in inflows into our PAVE ETF as investors have started to orient their portfolios towards this theme as they start to see the chances of it accelerating and really taking off,” Jacobs added.

For more news and information, visit the Thematic Investing Channel.