Getting infrastructure exposure used to be relegated to institutional investors, but now all investors can access the sector with funds like the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA ).
“Infrastructure was once only accessible to accredited institutional investors as a direct, private investment, but these assets have evolved such that they’re now available as publicly traded listed securities,” a FlexShares blog said. “For example, airports, seaports, cellular tower networks, fiber optic and cable networks around the globe are all accessible as publicly traded companies.”
Furthermore, the advent of exchange-traded funds (ETFs) has certainly changed the investing landscape. Funds like NFRA are able to encase specific equities that focus on infrastructure without investors needing to hold separate positions in various stocks.
As an added benefit, NFRA also incorporates a diversification component by holding equities from around the world that focus on infrastructure. The fund primarily focuses on large-cap equities, so the volatility of smaller-cap stocks is minimized.
“This gives investors easier access and greater liquidity than private investments,” the blog post added. “And an ETF structure like our FlexShares STOXX® Global Broad Infrastructure Index Fund (NFRA) offers operational ease and transparency, with its global infrastructure equity holdings published on a daily basis.”
Per its fund description, NFRA seeks investment results that generally correspond to the price and yield performance (before fees and expenses) of the STOXX® Global Broad Infrastructure Index. The index reflects the performance of a selection of companies that, in aggregate, offer broad exposure to publicly traded developed- and emerging-market infrastructure companies, including U.S. companies, as defined by STOXX Ltd. pursuant to its index methodology.
Infrastructure Bill Could Be a Key Mover
Infrastructure investors will certainly be watching the latest developments unfold on Capitol Hill. The trillion dollar infrastructure bill is currently trying to push through the House of Representatives after successfully passing through the Senate.
“The $1 trillion infrastructure bill received 19 GOP votes in the Senate, including one from Minority Leader Mitch McConnell, R-Ky., and could get 15 to 25 Republican votes in the House. But it’s unclear if any House Republicans would back the $3.5 trillion plan,” a CNBC article.
While nobody knows what will happen in the House, companies are already on board with supporting the move to better the country’s infrastructure.
“Everyone is talking about the bipartisan infrastructure bill that passed the Senate and is in the hands of the House of Representatives,” a Motley Fool article said. “Whether or not that spending plan comes to fruition, there are companies already supporting infrastructure improvements across the country.”
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