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Should You Invest in the Global X U.S. Infrastructure Development ETF (PAVE)?
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If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the Global X U.S. Infrastructure Development ETF (PAVE - Free Report) , a passively managed exchange traded fund launched on 03/06/2017.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $4.98 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.
The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.47%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 69.80% of the portfolio. Materials and Utilities round out the top three.
Looking at individual holdings, Nucor Corp (NUE - Free Report) accounts for about 3.41% of total assets, followed by Eaton Corp Plc (ETN - Free Report) and Rockwell Automation Inc (ROK - Free Report) .
The top 10 holdings account for about 29.87% of total assets under management.
Performance and Risk
So far this year, PAVE has lost about -8.91%, and it's up approximately 18.20% in the last one year (as of 02/08/2022). During this past 52-week period, the fund has traded between $22.25 and $29.01.
The ETF has a beta of 1.32 and standard deviation of 30.73% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X U.S. Infrastructure Development ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PAVE is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Infrastructure ETF (IFRA - Free Report) tracks NYSE FACTSET U.S. INFRASTRUCTURE INDEX and the iShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index. IShares U.S. Infrastructure ETF has $789.06 million in assets, iShares Global Infrastructure ETF has $3.31 billion. IFRA has an expense ratio of 0.30% and IGF charges 0.43%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Global X U.S. Infrastructure Development ETF (PAVE)?
If you're interested in broad exposure to the Utilities - Infrastructure segment of the equity market, look no further than the Global X U.S. Infrastructure Development ETF (PAVE - Free Report) , a passively managed exchange traded fund launched on 03/06/2017.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $4.98 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.
The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.47%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 69.80% of the portfolio. Materials and Utilities round out the top three.
Looking at individual holdings, Nucor Corp (NUE - Free Report) accounts for about 3.41% of total assets, followed by Eaton Corp Plc (ETN - Free Report) and Rockwell Automation Inc (ROK - Free Report) .
The top 10 holdings account for about 29.87% of total assets under management.
Performance and Risk
So far this year, PAVE has lost about -8.91%, and it's up approximately 18.20% in the last one year (as of 02/08/2022). During this past 52-week period, the fund has traded between $22.25 and $29.01.
The ETF has a beta of 1.32 and standard deviation of 30.73% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X U.S. Infrastructure Development ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PAVE is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Infrastructure ETF (IFRA - Free Report) tracks NYSE FACTSET U.S. INFRASTRUCTURE INDEX and the iShares Global Infrastructure ETF (IGF - Free Report) tracks S&P Global Infrastructure Index. IShares U.S. Infrastructure ETF has $789.06 million in assets, iShares Global Infrastructure ETF has $3.31 billion. IFRA has an expense ratio of 0.30% and IGF charges 0.43%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.