Clinton & Trump Can Agree On Infrastructure ETFs

October 26, 2016

The remaining infrastructure ETFs on the market are all much smaller than IGF and NFRA. For example, the third-largest is the SPDR S&P Global Infrastructure ETF (GII), a fund with only $88 million in assets, and which tracks the same index as IGF.

All nine available infrastructure ETFs are either global in scope or target emerging markets specifically. There's no exchange-traded fund that focuses solely on U.S. infrastructure.

Strong Performance Thanks To Election & FAST Act

Performancewise, infrastructure ETFs are up strongly this year, with gains of 8.6% to 26.1% for the seven global-focused funds in the space. That's more than the 6.8% year-to-date gain for the SPDR S&P 500 ETF (SPY).

YTD Returns For IGF, NFRA, FII, TOLZ, GRID, GHII, DBIF

 

In addition to anticipation of increased spending in a President Clinton or a President Trump administration, these ETFs may have also gotten a lift from the FAST Act, signed by President Obama in December 2015.

That five-year bill, formally known as the Fixing America's Surface Transportation Act, provided $305 billion to improve the country's highways, transit systems and federal passenger rail network. According to the American Society of Civil Engineers, the FAST Act covered the longest period of time of any transportation authorization bill since 2005.

Contact Sumit Roy at [email protected].

 

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