Infrastructure firms get a U.S. spending boost

Article Excerpt

Infrastructure assets have characteristics such as stable profits and cash flows that make them highly attractive to the companies that own them. And meanwhile, expansive spending plans announced by the U.S. federal government over the past two years will also provide a boost to the firms that deliver products and services for infrastructure development. What are infrastructure assets? Infrastructure provides the physical backbone that delivers essential services to the public. This includes natural gas, water and electricity delivery, as well as railroads, ports, communication infrastructure, and toll roads. Companies that own and operate in these industries are the traditional targets of infrastructure investment forms and funds. But a wider definition also includes companies that provide products and services to develop physical and digital infrastructure. The Global X Infrastructure Development ETF (see page 71), employs a wider definition of infrastructure by including companies that provide products and services for the development of infrastructure. These companies are well suited to benefit from the new U.S. infrastructure spending as discussed…