Pure-play infrastructure companies are the owners and operators of infrastructure assets, such as toll roads, airports, pipelines and communication towers. With their near monopolistic positions, continual demand and limited sensitivity to economic cyclicality, these companies, as a group, have had stable, predictable cash flows, attractive yields and are poised to benefit from increasing global infrastructure spending. What are some of these companies, and what kind of services do they provide? Let’s take a look.
Cheniere Energy, Inc. (Ticker: LNG) | Headquarters: Houston, TX
- International energy company that is the leading producer of liquefied natural gas (LNG) in the United States.
- Became the first company in February 2016 to ship LNG from a commercial facility in the contiguous United States.
- Approximately 80 percent of its expected aggregate LNG production capacity is contracted through long-term agreements with 18 investment-grade customers throughout the world.
Transurban (Ticker: TCL-AU) | Headquarters: Melbourne, Australia
- Leading owner and operator of toll roads, operating 17 toll roads in Australia and North America.
- Is expanding internationally with 100% stake in I-95 and I-495 Express Lanes in the Washington, DC area and 100% equity interest in Montreal-area’s A25, to be held until 2042.
American Tower Corporation (Ticker: AMT) | Headquarters: Boston, MA
- Leading independent owner, operator and developer of multi-tenant communication towers, which is poised to potentially benefit from rapidly increasing wireless data usage, including 5G.
- Holds approximately 171,000 communication sites in the U.S. and internationally that produce long-term and recurring revenue streams.
Aqua America (Ticker: WTR) | Headquarters: Bryn Mawr, PA
- Provides wastewater, drinking water and water-utility services to more than 3 million people in the U.S., and also provides wastewater-only services to an additional 250,000 people.
- Has made over 370 acquisitions since 1995 and treats over 82 billion gallons of water each year.
About TOLZ and the Dow Jones Brookfield Global Infrastructure Composite Index
The ProShares DJ Brookfield Global Infrastructure ETF (Ticker: TOLZ) is the only ETF focused on “pure play” infrastructure companies. Unlike other infrastructure strategies, it does not include construction, consulting or other auxiliary firms. TOLZ follows the Dow Jones Brookfield Global Infrastructure Composite Index. The index consists of companies domiciled globally whose primary business is the ownership and operation of infrastructure assets.
Dow Jones Brookfield Global Infrastructure Composite Index Holdings As of June 30, 2019
Index constituents as of 6/30/2019. Subject to change. TOLZ intends to hold securities in approximately the same proportion as the index, but there is no guarantee it will. View the complete list of TOLZ’s daily holdings.
- Get more information about TOLZ.
Sources: Cheniere.com, Transurban.com, AmericanTower.com, and AquaAmerica.com
Any forward-looking statements herein are based on expectations of ProShares at this time. Whether or not actual results and developments will conform to ProShares’ expectations and predictions, however, is subject to a number of risks and uncertainties, including general economic, market and business conditions, changes in laws or regulations or other actions made by governmental authorities or regulatory bodies, and other world economic and political developments. ProShares undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investing involves risk, including the possible loss of principal. This ProShares ETF is diversified and entails certain risks, including imperfect benchmark correlation and market price variance, that may decrease performance. This ETF is subject to risks faced by companies in the infrastructure, energy and utilities industries to the same extent as the Dow Jones Brookfield Global Infrastructure Composite Index is so concentrated. This ETF invests in master limited partnerships (MLPs). Investments in MLPs expose the ETF to certain tax risks associated with investing in partnerships. Changes in U.S. tax laws could revoke the pass-through attributes that provide the tax efficiencies that make MLPs attractive investment structures. MLPs may also have limited financial resources, may be relatively illiquid, and may be subject to more erratic price movements because of the underlying assets they hold. In addition, a portion of the ETF’s distributions may be a return of capital, which constitutes the return of a portion of a shareholder’s original investment. Under tax rules, returns of capital are generally not currently taxable, but lower a shareholder’s tax basis in their shares. Such a reduction in tax basis will result in larger taxable gains and/or lower tax losses on a subsequent sale of shares. International investments may involve risks from: geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and from economic or political instability. In emerging markets, many risks are heightened, and lower trading volumes may occur. For more on these and other risk, please read the prospectus. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
The “Dow Jones Brookfield Global Infrastructure Composite” Index is a product of S&P Dow Jones Indices LLC and its affiliates and has been licensed for use by ProShares. “S&P®” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by S&P Dow Jones Indices LLC and its affiliates as to their legality or suitability. ProShares based on the Dow Jones Brookfield Global Infrastructure Composite Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.