We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trump or Biden, Infrastructure ETFs to Soar Higher
Read MoreHide Full Article
Chances are rising that the blue wave of Democrats will take control over the House and Senate in November. Democratic presidential candidate Joe Biden now has better chances of winning the November election, according to a national poll. President Trump presently has a 40% chance of winning the White House compared with about 50% in May.
Joe Biden proposed $1.3 trillion infrastructure overhaul last year. Though he said he will fund the plan through tax increases on the wealthy and corporations, we see moderate increases in both tax rates as well as infrastructure activities under Biden’s rule.
The Democratic presidential candidate’s campaign eyes investing in restoring highways, roads and bridges, while trying to boost adoption of electric vehicles and trains. His plan also calls for changing water pipes, building out rural broadband access and updating schools, among other measures.
Meanwhile, the Trump administration is also reportedly preparing a nearly $1 trillion infrastructure plan as part of its efforts to bolster the American economy. The Department of Transportation's preliminary version takes care of most of the funding for projects such as roads and bridges, but also kept money for 5G wireless infrastructure and rural broadband.The present U.S. infrastructure funding law, known as the FAST Act, permits $305 billion over five years. The limit expires on Sep 30.
Since both Democratic and Republican candidates are vowing for boosting infrastructure spending, it can be concluded that infrastructure ETFs could be gainers no matter who wins in the presidential election 2020. If this was not enough, a super-dovish Fed, its zero-rate policy and an unlimited QE policy is likely to boost capital-intensive as well as debt-heavy infrastructure sector. Additionally, some infrastructure ETFs offer hefty dividend yields too.
Against this backdrop, below-mentioned infrastructure ETFs should be on watch.
The fund offers exposure to U.S. infrastructure companies that could benefit from a potential increase in domestic infrastructure activities. The 135-stock fund charges 40 bps in fees. The fund yields 2.26% annually. This is way higher than the benchmark U.S. treasury yield of 0.67% annually, as of Jul 8, 2020.
Invesco Dynamic Building & Construction ETF (PKB - Free Report)
Global X U.S. Infrastructure Development ETF (PAVE - Free Report)
The fund measures 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. The fund charges 47 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Trump or Biden, Infrastructure ETFs to Soar Higher
Chances are rising that the blue wave of Democrats will take control over the House and Senate in November. Democratic presidential candidate Joe Biden now has better chances of winning the November election, according to a national poll. President Trump presently has a 40% chance of winning the White House compared with about 50% in May.
Joe Biden proposed $1.3 trillion infrastructure overhaul last year. Though he said he will fund the plan through tax increases on the wealthy and corporations, we see moderate increases in both tax rates as well as infrastructure activities under Biden’s rule.
The Democratic presidential candidate’s campaign eyes investing in restoring highways, roads and bridges, while trying to boost adoption of electric vehicles and trains. His plan also calls for changing water pipes, building out rural broadband access and updating schools, among other measures.
Meanwhile, the Trump administration is also reportedly preparing a nearly $1 trillion infrastructure plan as part of its efforts to bolster the American economy. The Department of Transportation's preliminary version takes care of most of the funding for projects such as roads and bridges, but also kept money for 5G wireless infrastructure and rural broadband.The present U.S. infrastructure funding law, known as the FAST Act, permits $305 billion over five years. The limit expires on Sep 30.
Since both Democratic and Republican candidates are vowing for boosting infrastructure spending, it can be concluded that infrastructure ETFs could be gainers no matter who wins in the presidential election 2020. If this was not enough, a super-dovish Fed, its zero-rate policy and an unlimited QE policy is likely to boost capital-intensive as well as debt-heavy infrastructure sector. Additionally, some infrastructure ETFs offer hefty dividend yields too.
Against this backdrop, below-mentioned infrastructure ETFs should be on watch.
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 135-stock fund charges 40 bps in fees. The fund yields 2.26% annually. This is way higher than the benchmark U.S. treasury yield of 0.67% annually, as of Jul 8, 2020.
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 charges 60 bps in fees(read: A New $1T US Infrastructure Bill on the Way? ETF & Stock Picks).
Global X U.S. Infrastructure Development ETF (PAVE - Free Report)
The fund measures 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. The fund charges 47 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>