This ETF Theme Drives The World

August 06, 2019

GHII has the lowest exposure to the U.S., weighting it at roughly 30%, nearly as much weight as it affords Canada. Other countries that appear in the top three for each fund include Australia, Italy, Hong Kong and Japan (Figure 2).

Performance & Trading
A couple of funds have noticeably outperformed the category’s benchmark over the different periods shown in Figure 3, especially NFRA and TOLZ. Meanwhile, IGF has exhibited outperformance over the longer term but not so much over more recent periods.

 

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IGF also delivered a 12-month distribution yield of 3.23%, the second highest in the group after GHII, the dividend-focused ETF, which has a distribution yield of 5.12%.

As previously mentioned, IGF is the most liquid of the funds in the group, with a fairly massive amount traded on a daily basis and a narrow spread of 0.04%. GHII, as the smallest fund, is the least liquid, with just a little more than $100,000 in value traded daily, and the widest spread in the group, at 0.47%.

GHII also has the highest PE ratio of the group, at 29.11, and the smallest amount of inflows for the year-to-date period, at $6.7 million. NFRA, the second-largest fund in the group, has the lowest PE, at 19.48, and also saw the most YTD inflows, at $398.2 million (Figure 4).

 

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Selecting A Fund
The various funds in the group could be good choices for a range of investors. IGF is no doubt the best for anyone considering tactical exposure to the infrastructure space, but NFRA has a lot to offer investors given its low PE, solid liquidity and broad exposure. It also has generally outperformed IGF.

Although GII tracks the same index as IGF and has the lowest expense ratio in the group, it’s also slightly underperformed its counterpart.

For investors concerned with income, GHII is likely the best choice, but they should consider that its tradability ranks last in the group. However, if investors favor the utilities sector, that represents almost half of GHII’s portfolio.

And while the U.S. gets the largest weighting of any country in all of the funds, it represents more than half of the portfolio of TOLZ.

For investors with a strong belief in U.S.-based infrastructure companies, or who believe the U.S. is likely to embark on a big infrastructure push, TOLZ could be the way to go.

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