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ETFs To Play U.S. Infrastructure Overhaul

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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.

On Aug 1, Senate introduced a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. The 2,702-page legislation is aimed at establishing the United States with the world's best economic infrastructure. Total spending may go up to $1.2 trillion if the plan is extended to eight years.

The infrastructure bill will provide $100 billion toward roads, bridges and other major projects. The plan allocates $39 billion to modernize public transit and improve access for disabled people.

In addition, the bill has proposed $66 billion for passenger and freight rail, $15 billion for electric vehicles and buses, and $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.

Against this backdrop, below we highlight a few ETFs that could prove to be winning ones.

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 0.98% of the fund. The 153-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. Trane (5.67%), Johnson Controls (5.68%) and Home Depot (5.35%) are the three top stocks of the fund. The 30-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 50.3% of the 123-stock fund. It charges 47 bps in fees.