Countries worldwide are dedicating vast amounts of money to infrastructure spending over the next five years and there are easy avenues to prosper from this spending with ETFs. A recent white paper by Eric J. Gerritsen on The Journal of Commerce Online provides a brilliant snap shot of the infrastructure boom that awaits.
Eye Popping Numbers
According to Gerristen’s White Paper, the U.S. will spend $150 billion of the government’s stimulus funds on infrastructure. Other developed nations like Germany, Australia, Great Britain and Canada are all planning large amounts of infrastructure spending as well. In addition, emerging market nations such as China and India are planning to spend obscene amounts to get their countries into the 21st century. India alone is planning to double the number of its major international airports in the next decade. China also is planning very aggressive airport development. This is not to mention countries like Chile rolling out new roads, schools and stadiums with their $4 billion infrastructure plans and Brazil’s $212 billion spending on railways, roads and airports.
ETF Opportunities
On June 19, 2009 iShares rolled out an Emerging Market Infrastructure (ticker EMIF) fund to join Powershares Emerging Markets Infrastructure Fund (ticker (PXR) in the same space. Additionally, for those not willing to go the emerging markets route take a look at iShares Global Infrastructure (ticker IGF) or SPDR/FTSE Macquarie Global Infrastructure Fund (ticker GII). Obviously, the need for infrastructure in the developing world is much greater than the developed world and hence provides an extraordinary opportunity. Keep in mind though that the U.S. has done very little infrastructure spending in the last 40 years and also presents some great opportunities.
- iShares Emerging Market Infrastructure (ticker EMIF) as it is one day old
- Powershares Emerging Markets Infrastructure Fund (ticker PXR) is well above its 200 day EMA
- iShares Global Infrastructure (ticker IGF) is still above its 50 day EMA an is dancing near its 200 day EMA
- SPDR/FTSE Macquarie Global Infrastructure Fund (ticker GII) is above its 50 day EMA but has not broken its 200 day EMA
Disclosure Statement: ETFGPS is a blog that Navigates The World of ETFs. Sustainable Investment Strategies LLC is a Registered Investment Adviser in the State of Maryland, and may hold positions in the ETF(s) listed above. Investors who are interested in money management services may visit the Sustainable Investment Strategies LLC web site.
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