Why is infrastructure important? There are several reasons why infrastructure needs are growing within the U.S. For example, existing infrastructure like roads, highways, and railroads needs to be maintained, repaired, or replaced. Total vehicle miles traveled in the U.S. has increased to almost $3.3 trillion in the twelve months ending June 2022—up over 10% in the past ten years and stressing current surface transportation infrastructure.(3) In the next ten years that number could increase significantly—even if there are less passenger vehicles on the road due to more remote work and less commuting, the number of goods and freight moved across the U.S. has been growing steadily. Freight tonnage is expected to grow 28% from 2021 to 2032—over 70% of this will be carried over the road via trucks.(4) Without properly built roads, there could be an increase in congestion, freight delivery delays, accidents, and fatalities. Second, new infrastructure is required to be built in order to meet more advanced technological needs. For example, broadband deployment and maintenance is now more important than ever as humans become more digitally connected. Also, as the country shifts to net zero, there needs to be an adequate amount of charging stations for electric vehicles. The U.S. currently has enough charging stations to meet only 4% of projected demand.(5) The U.S. government has recently taken some steps to recognize this large funding gap. In late 2021, the U.S. passed a five-year, $1.2 trillion infrastructure package which has been the largest infrastructure investment in recent history. Out of this package, $550 billion is new spending including: $110 billion for roads and bridges, $66 billion for passenger and freight rail, $65 billion for the power grid, $65 billion to improve broadband infrastructure, $55 billion for water infrastructure, and $7.5 billion for electric vehicle charging What does INFRA look like? INFRA starts with a broad universe of U.S. equities and selects companies engaged in the construction, development, operation, and maintenance of infrastructure. These companies must belong to one of several GICS Sub-Industries (the bar chart below includes those currently found in the index but is not all-inclusive). The 100 largest stocks by market capitalization are included and equal-weighted to ensure exposure across business segments (approximately 1% weighting each). Because of these selection criteria, the majority of the index are large-cap companies (97.2% by index weight) and most companies are from the industrials sector (39.3% index weight) and the utilities sector (32.0% index weight).