An ETF to Watch After House Passes Infrastructure Bill

David Graham

3 years ago

After an uphill climb on Capitol Hill, the trillion-dollar infrastructure plan passed through the House of Representatives, paving the way for various ETF opportunities, with the most obvious being for infrastructure-focused funds.

“The House passed a more than $1 trillion bipartisan infrastructure bill late Friday, sending it to President Joe Biden’s desk in a critical step toward enacting sprawling Democratic economic plans,” CNBC reports. “The Senate approved the revamp of transportation, utilities and broadband in August. The legislation’s passage is perhaps the unified Democratic government’s most concrete achievement since it approved a $1.9 trillion coronavirus relief package in the spring.”

ETF investors can look to a plethora of opportunities that the infrastructure bill passage can create. From construction to technology, savvy investors can identify various sub-sectors and the ETFs that focus on those specific areas.

“The bipartisan Infrastructure Investment and Jobs Act would put $550 billion in new money into transportation projects, the utility grid and broadband,” CNBC notes. “The package includes $110 billion for roads, bridges and other major projects, along with $66 billion for passenger and freight rail and $39 billion for public transit.”

“It would put $65 billion into broadband, a priority for many lawmakers after the coronavirus pandemic highlighted inequities in internet access for households and students across the country,” CNBC adds further. “The legislation would also invest $55 billion into water systems, including efforts to replace lead pipes.”

An Infrastructure ETF Opportunity

ETF investors looking to build off the infrastructure bill as a whole can take advantage of future growth opportunities with the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA). The fund comes with a 0.47% net expense ratio.

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 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 says. “For example, airports, seaports, cellular tower networks, fiber optic and cable networks around the globe are all accessible as publicly traded companies.” For more news, information, and strategy, visit the Multi-Asset Channel.