At face value, infrastructure stocks already offer a solid value proposition, due to their income opportunities, inflation protection, and more. However, long-term tailwinds could further propel these companies to new heights.
Recently, the team at BNY Investments examined the trends working in favor of the global infrastructure space. In particular, one factor cited is the gap between required infrastructure investment and the actual amount of capital put into infrastructure thus far.
To take a step back, this need for stronger infrastructure is partly due to the rapid expansion of AI. With AI adoption and innovation continuing to mount, more data centers need to be constructed, and many electrical grids require modernization. These efforts will require significant capital investment.
See More: Rising AI Demand Bridges the Gap to Infrastructure Spending
Furthermore, the gap in infrastructure investment is seemingly widening. The BNY Investments report cites a study from McKinsey & Company, projecting that the need for new and updated global infrastructure may require $106 trillion in spending by 2040. The BNY Investments team noted that the current infrastructure spending levels are far from catching up to that marker. Meeting the needs of tomorrow will require trillions of dollars in increased investments.
“Since the widening infrastructure investment gap will take years – if not decades – to close, we see a long runway for companies to benefit,” the BNY Investments team noted. “This sustained demand is expected to drive faster growth than historical norms, creating rerating opportunities for companies that are already trading at attractive valuations relative to their history.”
BKGI Blends Traditional and Non-Traditional Infrastructure Companies
For those looking to take advantage of the opportunities within global infrastructure, the BNY Mellon Global Infrastructure Income ETF (BKGI ) could help. BKGI provides actively managed exposure to a variety of different infrastructure companies across the globe.
See More: Global Infrastructure ETFs: Defense, Diversity, & Income
Notably, BKGI invests in both traditional and non-traditional infrastructure companies. For its portfolio team, non-traditional infrastructure refers to assets in sectors such as communications services, real estate, and healthcare. This allocation allows BKGI to tap into a multitude of different avenues of opportunity within global infrastructure, especially when paired with traditional infrastructure investments.
As the year has progressed, investors have continued to allocate assets towards BKGI. That showcases the confidence many have in the fund’s approach. Between April 28, 2026, and May 28, 2026, the fund has seen about $120 million in net flows.
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