Richard CroftGlobal X US Infrastructure Development ETFPAVETOP PICKDec 27, 2019
A political call since it’s a political year. The only thing republicans and democratic agree on is infrastructure. A nice piece for a portfolio to give stable growth.
Likes infrastructure since an astonishing amount of money around the world will be going into this. eg. water de-salination, bridges, roads etc. Good core holding and relatively safe. Incredible amount of new and rebuilding going on throughout world over next 5 to 10 years.
Both companies are fine. If you want to play the infrastructure bill, then he would look at PAVE instead of WSP or STN. PAVE is a good way to play on a diversified basis.
Caller asked for an infrastructure ETF. Gives you exposure to aspects of infrastructures like pipelines, utilities, and telcos. Aspects of infrastructures are there. Lots of different ways to look at infrastructure. PAVE gives you access to roads and infrastructure.
Fantastic ETF in the infrastructure space. With fiscal stimulus and the US infrastructure plan, this one will definitely benefit. A comparable would be the VIS ETF, which is simply industrial. Don't make it too big a percentage of your portfolio. MER is fair.
If you can't decide on one infrastructure name, then this ETF holds 101 such stocks starting with Deere & Company, plus Kansas City Southern, Emerson Electric, Nucor and Parker Hannifin Corp. Averaging nearly two million shares, the daily volumes of PAVE are higher than other American infrastructure ETFs, such as IFRA, so will offer less volatility. Lower volatility, after all, is one big reason to buy an ETF instead of an individual stock in a sector. The trade-off are lower returns. Witness that Deere has rallied 37% year-to-date, Nucor 54% while PAVE has climbed 21.5%. Other considerations are PAVE's 0.47% MER and 0.37% dividend yield. Again, Pave is a safe and convenient way to play U.S infrastructure within a wider portfolio.