Infrastructure ETFs offer stability

Article Excerpt

Governments around the world know the benefits that flow from upgrading infrastructure. However, stretched budgets because of the pandemic—as well as a reluctance to raise taxes—have limited the ability of governments to initiate new projects or to even expand existing ones. That reality nonetheless provides opportunities for private interests to develop and manage these assets. Here are three ETFs that invest in publicly listed companies that own and operate infrastructure assets (and see the supplement on page 79 for more information on the risk and return profiles of these assets). FLEXSHARES STOXX GLOBAL BROAD INFRASTRUCTURE ETF $51.47 (New York symbol NFRA; TSINetwork ETF Rating: Aggressive; Market cap: $2.6 billion) tracks the STOXX Global Broad Infrastructure Index. The index includes companies from developed and emerging markets that own and manage energy assets, utilities, datacentres, wireless towers, hospitals, roads, railways, and airports. Stocks are weighted based on their adjusted market values and each stock is capped at 5% of the portfolio; country weights are limited to…

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