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Majority Leader Chuck Schumer has been aiming to pass the bipartisan infrastructure bill this week. According to a CNBC report, he wants to pass both the infrastructure plan and a budget resolution before the chamber’s August recess. In fact, Schumer has pledged to postpone the Senate’s August break until the bill is passed. However, to gather 60 votes required to pass the bill in the Democratic-held Senate, support from the Democratic leaders will be required, per the CNBC article.
The Senate’s move of introducing the bipartisan infrastructure bill of $550 billion on Aug 1 in addition to the previously-approved funds of $450 billion for five years has brought some optimism among investors. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
According to the White House, the proposal will allocate about $100 billion toward the development of roads, bridges and other major projects and $66 billion toward passenger and freight rail. Going on, about $15 billion will be invested toward electric vehicle infrastructure and electric buses and transit, much lesser than what Biden had initially proposed. The bill will also include $11 billion for reducing car crashes and fatalities through a “Safe Streets for All” program. The plan allocates $39 billion to modernize public transit and improve access for disabled people.
Furthermore, the bill has provided $17 billion for airports, ports and waterways. The plan will invest $50 billion and $55 billion in water infrastructure and clean water projects, respectively. Moreover, $65 billion will be invested in high-speed Internet (broadband), $21 billion in environmental clean-up and $73 billion in Power infrastructure, per the verified sources
ETFs to Gain
Let’s take a look at some ETFs which can shine bright following the new infrastructure deal:
The fund offers exposure to U.S. infrastructure companies that could benefit from a potential increase in domestic infrastructure activities. The fund has AUM of $644.8 million and charges 40 basis points (bps) in fees (read: ETF Investment Strategies for Second Half of 2021).
Invesco Dynamic Building & Construction ETF (PKB - Free Report)
The underlying Dynamic Building & Construction Intellidex Index comprises stocks of U.S. building and construction companies. The fund has AUM of $290.4 million and charges 59 bps in fees (read: Pain or Gain Ahead for Homebuilding ETFs?).
The Materials Select Sector SPDR Fund (XLB - Free Report)
The most-popular material ETF follows the Materials Select Sector Index. This fund manages $8.55 billion in its asset base. The ETF charges 12 bps in fees per year from investors (read: Materials ETFs Set to Gain As Q2 Earnings Unfold).
The investment objective of the fund is to seek investment results that correspond generally to the price and yield, before the fund's fees and expenses, of an index called the Nasdaq US Smart Transportation Index. With AUM of $1.13 billion, the fund has an expense ratio of 60 bps (read: Transport ETFs Gain on Solid Q2 Earnings).
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
The fund seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (EVs), and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. The $1.05 billion fund charges 68 bps in fees.
The underlying MSCI US Investable Market Communication Services 25/50 Index is designed to capture the large, mid and small-cap segments of the U.S. equity universe. The fund charges 10 bps in fees and has AUM of $4.58 billion (read: Can Google ETFs Keep Gaining on Q2 Earnings Optimism?).
The underlying NASDAQ OMX US Water Index tracks the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The fund has AUM of $1.84 billion and charges 60 bps in fees (read:8 ETFs to Buy in Historically Low August).
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ETFs to Win on Latest Infrastructure Bill Talks
Majority Leader Chuck Schumer has been aiming to pass the bipartisan infrastructure bill this week. According to a CNBC report, he wants to pass both the infrastructure plan and a budget resolution before the chamber’s August recess. In fact, Schumer has pledged to postpone the Senate’s August break until the bill is passed. However, to gather 60 votes required to pass the bill in the Democratic-held Senate, support from the Democratic leaders will be required, per the CNBC article.
The Senate’s move of introducing the bipartisan infrastructure bill of $550 billion on Aug 1 in addition to the previously-approved funds of $450 billion for five years has brought some optimism among investors. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
According to the White House, the proposal will allocate about $100 billion toward the development of roads, bridges and other major projects and $66 billion toward passenger and freight rail. Going on, about $15 billion will be invested toward electric vehicle infrastructure and electric buses and transit, much lesser than what Biden had initially proposed. The bill will also include $11 billion for reducing car crashes and fatalities through a “Safe Streets for All” program. The plan allocates $39 billion to modernize public transit and improve access for disabled people.
Furthermore, the bill has provided $17 billion for airports, ports and waterways. The plan will invest $50 billion and $55 billion in water infrastructure and clean water projects, respectively. Moreover, $65 billion will be invested in high-speed Internet (broadband), $21 billion in environmental clean-up and $73 billion in Power infrastructure, per the verified sources
ETFs to Gain
Let’s take a look at some ETFs which can shine bright following the new infrastructure deal:
iShares U.S. Infrastructure ETF (IFRA - Free Report)
The fund offers exposure to U.S. infrastructure companies that could benefit from a potential increase in domestic infrastructure activities. The fund has AUM of $644.8 million and charges 40 basis points (bps) in fees (read: ETF Investment Strategies for Second Half of 2021).
Invesco Dynamic Building & Construction ETF (PKB - Free Report)
The underlying Dynamic Building & Construction Intellidex Index comprises stocks of U.S. building and construction companies. The fund has AUM of $290.4 million and charges 59 bps in fees (read: Pain or Gain Ahead for Homebuilding ETFs?).
The Materials Select Sector SPDR Fund (XLB - Free Report)
The most-popular material ETF follows the Materials Select Sector Index. This fund manages $8.55 billion in its asset base. The ETF charges 12 bps in fees per year from investors (read: Materials ETFs Set to Gain As Q2 Earnings Unfold).
First Trust Nasdaq Transportation ETF (FTXR - Free Report)
The investment objective of the fund is to seek investment results that correspond generally to the price and yield, before the fund's fees and expenses, of an index called the Nasdaq US Smart Transportation Index. With AUM of $1.13 billion, the fund has an expense ratio of 60 bps (read: Transport ETFs Gain on Solid Q2 Earnings).
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
The fund seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (EVs), and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. The $1.05 billion fund charges 68 bps in fees.
Vanguard Communication Services ETF (VOX - Free Report)
The underlying MSCI US Investable Market Communication Services 25/50 Index is designed to capture the large, mid and small-cap segments of the U.S. equity universe. The fund charges 10 bps in fees and has AUM of $4.58 billion (read: Can Google ETFs Keep Gaining on Q2 Earnings Optimism?).
Invesco Water Resources ETF (PHO - Free Report)
The underlying NASDAQ OMX US Water Index tracks the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The fund has AUM of $1.84 billion and charges 60 bps in fees (read:8 ETFs to Buy in Historically Low August).