3 Infrastructure ETFs To Consider Buying As Biden Transitions Into Presidency

: IFRA | iShares U.S. Infrastructure ETF News, Ratings, and Charts

Joe Biden assumed office of the U.S. presidency earlier this week, marking the beginning of a potential new era for the country. The first term of Biden’s presidency is expected to revolve around the nation’s recovery from the COVID-19 pandemic. With the Democratic Party now controlling the U.S. House of Representatives and the U.S. Senate, Biden hopes to gain approval for his $1.9 trillion coronavirus relief package in short order.

While the emergency fiscal stimulus package focuses on direct cash transfers seeking a short-term economic boost, Biden’s long-term plan involves a $2 trillion so-called Green New Deal. Through it, Biden seeks to invest approximately $500 billion each year to develop sustainable infrastructure nationwide, which should boost the country’s industrial and manufacturing sectors tremendously.

His proposal represents a vastly different approach than the one taken by former President Trump. Trump advocated for the privatization of infrastructure rather than hefty government spending on it.

A poll conducted by the Pew Charitable Trust in February 2020 stated that 68% of Americans supported an increase in federal infrastructure spending. With Biden’s approach garnering widespread support, we believe ETFs, such as iShares U.S. Infrastructure ETF (IFRA), Global X U.S. Infrastructure Development ETF (PAVE), and iShares Global Infrastructure ETF (IGF), should be profitable investment bets for the long run.

iShares U.S. Infrastructure ETF (IFRA)

IFRA invests in companies that have direct and indirect exposure to the infrastructure sector in the U.S. Its holding companies are divided into two categories – Infrastructure enablers and Infrastructure asset owners and operators — each having a 50% weighting in the ETF.

IFRA closely tracks the NYSE FactSet U.S. Infrastructure Index, with $159.10 million in assets under management (AUM). The ETF’s major holdings include Builders FirstSource, inc. (BLDR), Gibraltar Industries, Inc. (ROCK), and Cleveland-Cliffs Inc. (CLF).

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