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Infrastructure ETFs & Stocks Up for a Rally in Biden Era
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Since when the blue wave of Democrats hit the U.S. economic shores, the investing case for a few sectors strengthened. Among the lot, infrastructure is a prominent one. In his presidential campaign, Joe Biden proposed a $1.3 trillion infrastructure overhaul.
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.
Most recently, Biden cautioned a bipartisan group of senators in a meeting on Feb 11 that China is aggressively overtaking the United States on infrastructure, as quoted on CNBC. In an interview with CBS, Biden said that his administration is up for “extreme competition” with China but that his approach would be different from his predecessor’s. Notably, Trump’s four-year term was known for acute trade tensions with China.
If this was not enough, a super-dovish Fed, its zero-rate policy and an unlimited QE policy are likely to boost the capital-intensive and debt-heavy infrastructure sector. Additionally, some infrastructure ETFs offer hefty dividend yields too.
The fund offers exposure to U.S. infrastructure companies that could benefit from a potential increase in domestic infrastructure activities. No stock accounts for more than 1.64% of the fund. The 133-stock fund charges 40 bps in fees.
Invesco Dynamic Building & Construction ETF (PKB - Free Report)
The underlying Dynamic Building & Construction Intellidex Index comprises stocks of U.S. building and construction companies. Lennar (5.37%), Martin Marietta Materials (5.04%) and Lowe's (5.02%) are the three top stocks of the fund. The 31-stock fund charges 59 bps in fees.
ProShares DJ Brookfield Global Infrastructure ETF (TOLZ - Free Report)
The fund offers access to an asset class with growing global demand, increasing opportunities for private investment, and high barriers to entry that limit competition. The United States accounts for about 50.7% of the 124-stock fund. It charges 47 bps in fees.
The Zacks Rank #2 (Buy) construction company provides services on and off the water primarily in the continental United States, Alaska, Canada and the Caribbean Basin.
The Zacks Rank #1 (Strong Buy) company, through various subsidiaries, operates as one of the largest specialty contractors and infrastructure companies in the United States.
The Zacks Rank #3 (Hold) company is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility and other infrastructure.
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Infrastructure ETFs & Stocks Up for a Rally in Biden Era
Since when the blue wave of Democrats hit the U.S. economic shores, the investing case for a few sectors strengthened. Among the lot, infrastructure is a prominent one. In his presidential campaign, Joe Biden proposed a $1.3 trillion infrastructure overhaul.
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.
Most recently, Biden cautioned a bipartisan group of senators in a meeting on Feb 11 that China is aggressively overtaking the United States on infrastructure, as quoted on CNBC. In an interview with CBS, Biden said that his administration is up for “extreme competition” with China but that his approach would be different from his predecessor’s. Notably, Trump’s four-year term was known for acute trade tensions with China.
If this was not enough, a super-dovish Fed, its zero-rate policy and an unlimited QE policy are likely to boost the capital-intensive and debt-heavy infrastructure sector. Additionally, some infrastructure ETFs offer hefty dividend yields too.
ETF Picks
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. No stock accounts for more than 1.64% of the fund. The 133-stock fund charges 40 bps in fees.
Invesco Dynamic Building & Construction ETF (PKB - Free Report)
The underlying Dynamic Building & Construction Intellidex Index comprises stocks of U.S. building and construction companies. Lennar (5.37%), Martin Marietta Materials (5.04%) and Lowe's (5.02%) are the three top stocks of the fund. The 31-stock fund charges 59 bps in fees.
ProShares DJ Brookfield Global Infrastructure ETF (TOLZ - Free Report)
The fund offers access to an asset class with growing global demand, increasing opportunities for private investment, and high barriers to entry that limit competition. The United States accounts for about 50.7% of the 124-stock fund. It charges 47 bps in fees.
Stock Picks
Orion Group Holdings, Inc. (ORN - Free Report)
The Zacks Rank #2 (Buy) construction company provides services on and off the water primarily in the continental United States, Alaska, Canada and the Caribbean Basin.
Primoris Services Corporation (PRIM - Free Report)
The Zacks Rank #1 (Strong Buy) company, through various subsidiaries, operates as one of the largest specialty contractors and infrastructure companies in the United States.
MasTec Inc. (MTZ - Free Report)
The Zacks Rank #3 (Hold) company is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility and other infrastructure.
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 >>