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The Zacks Analyst Blog Highlights: IFRA, TOLZ, XLI, XLB and XLE
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For Immediate Release
Chicago, IL – November 11, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: iShares U.S. Infrastructure ETF (IFRA - Free Report) , ProShares DJ Brookfield Global Infrastructure ETF (TOLZ - Free Report) , Industrial Select Sector SPDR ETF (XLI - Free Report) , Materials Select Sector SPDR ETF (XLB - Free Report) and Energy Select Sector SPDR ETF (XLE - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Sector ETFs to Make the Most of the Infrastructure Bill
On Nov 5, in a majority voting of 228-206, the House of Representative passed a $1.2 trillion bipartisan infrastructure bill. The bill was cleared by the Senate in August. This would put $550 billion of new funding into transportation projects, the utility grid and broadband.
Inside Infrastructure Plan
The infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years is a tailwind for the U.S. economic growth. The 2,702-page legislation is aimed at establishing the United States with the world's best economic infrastructure.
The infrastructure bill provides $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 assigned $66 billion for passenger and freight rail, $15 billion for electric vehicles and buses, and $17 billion for airports, ports and waterways.
The bill 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.
No wonder, the passage of the infrastructure bill is expected to benefit the U.S. economy in various ways. Since the Dow Jones has exposure to the industrial sector greatly, such a bill is helpful for the index. Against this backdrop, below we highlight a few sector ETFs that could gain ahead on the basis of the passage of the infrastructure bill.
Sector ETFs to Benefit
Infrastructure
Since the bill is based on the U.S. infrastructure overhaul, the sector should boom undoubtedly. iShares U.S. Infrastructure ETF and ProShares DJ Brookfield Global Infrastructure ETF have been among the top picks here.
Industrials
The Zacks Rank #1 (Strong Buy) Industrial Select Sector SPDR ETF will likely gain ahead as the infrastructure bill will boost industrial activities in the country. Along with large-cap construction companies, small-caps should benefit also. Specializing in asphalt and highway construction, Walton’s company, like many other small businesses, is well-positioned to cash in on federal projects, if we go by a CNBC article.
Materials
Infrastructure and industrial activities will definitely require materials and thus the sector will emerge as yet another beneficiary. Plus, higher pent-up demand and an improving labor market should boost the inflationary pressure and increase the price of materials. Materials Select Sector SPDR ETF should thus be closely-watched for gains.
Energy
Demand for oil should be higher if the economic and industrial activities perk up. The ongoing global power crisis has made the space even more lucrative. So, one can have faith in Zacks Rank #3 (Hold) Energy Select Sector SPDR ETF.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: IFRA, TOLZ, XLI, XLB and XLE
For Immediate Release
Chicago, IL – November 11, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: iShares U.S. Infrastructure ETF (IFRA - Free Report) , ProShares DJ Brookfield Global Infrastructure ETF (TOLZ - Free Report) , Industrial Select Sector SPDR ETF (XLI - Free Report) , Materials Select Sector SPDR ETF (XLB - Free Report) and Energy Select Sector SPDR ETF (XLE - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Sector ETFs to Make the Most of the Infrastructure Bill
On Nov 5, in a majority voting of 228-206, the House of Representative passed a $1.2 trillion bipartisan infrastructure bill. The bill was cleared by the Senate in August. This would put $550 billion of new funding into transportation projects, the utility grid and broadband.
Inside Infrastructure Plan
The infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years is a tailwind for the U.S. economic growth. The 2,702-page legislation is aimed at establishing the United States with the world's best economic infrastructure.
The infrastructure bill provides $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 assigned $66 billion for passenger and freight rail, $15 billion for electric vehicles and buses, and $17 billion for airports, ports and waterways.
The bill 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.
No wonder, the passage of the infrastructure bill is expected to benefit the U.S. economy in various ways. Since the Dow Jones has exposure to the industrial sector greatly, such a bill is helpful for the index. Against this backdrop, below we highlight a few sector ETFs that could gain ahead on the basis of the passage of the infrastructure bill.
Sector ETFs to Benefit
Infrastructure
Since the bill is based on the U.S. infrastructure overhaul, the sector should boom undoubtedly. iShares U.S. Infrastructure ETF and ProShares DJ Brookfield Global Infrastructure ETF have been among the top picks here.
Industrials
The Zacks Rank #1 (Strong Buy) Industrial Select Sector SPDR ETF will likely gain ahead as the infrastructure bill will boost industrial activities in the country. Along with large-cap construction companies, small-caps should benefit also. Specializing in asphalt and highway construction, Walton’s company, like many other small businesses, is well-positioned to cash in on federal projects, if we go by a CNBC article.
Materials
Infrastructure and industrial activities will definitely require materials and thus the sector will emerge as yet another beneficiary. Plus, higher pent-up demand and an improving labor market should boost the inflationary pressure and increase the price of materials. Materials Select Sector SPDR ETF should thus be closely-watched for gains.
Energy
Demand for oil should be higher if the economic and industrial activities perk up. The ongoing global power crisis has made the space even more lucrative. So, one can have faith in Zacks Rank #3 (Hold) Energy Select Sector SPDR ETF.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.