- The ETFx Infrastructure Indices are
a modular set of indices that offers investors comprehensive exposure
to infrastructure equities globally.
- The master index consists of 4 industrial sector indices assembled according to infrastructure class
- The modified equal-weighted index composition permits holdings across a range of market capitalizations in 52 countries
- For exposure to infrastructure, we believe that sector-based indices
provide more effective tools for portfolio constructions over geographic/regional
based indices. Furthermore, modified equal weighting has many advantages
over market cap weights when providing exposures to relatively
inefficient markets.
- 53% developed world equities and 47% emerging markets equities across 590 issues
- Focused set of infrastructure classes that an investor may tailor for investment needs
- GDP screen considers economic output as the primary qualifying variable
for nations
- Liquidity and market value screen qualifies stock issues
- Higher yielding securities given preference over lower yielding securities
Benefits for Portfolio Construction:
- Low correlation to most other major asset classes
- Lower risk (lower
volatility) asset class due to social/economic
importance at all points of economic/business cycle
- Excellent inflation hedge
- Reliable/stable source of yield (income)
- Many pension funds find infrastructure investments are a great source of return to match their longer term liability stream