Should You Invest in the Global X US Infrastructure Development ETF (PAVE)? – Green Entrepreneur

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks

If you’re interested in broad exposure to the Utilities – Infrastructure segment of the equity market, look no further than the Global X U.S. Infrastructure Development ETF (PAVE), a passively managed exchange traded fund launched on 03/06/2017.

hero image zacks 401428

– Zacks

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities – Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $5.46 billion, making it one of the largest ETFs attempting to match the performance of the Utilities – Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.

The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.


Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.47%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.33%.

Sector Exposure and Top Holdings

It is important to delve into an ETF’s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Industrials sector–about 71.50% of the portfolio. Materials and Information Technology round out the top three.

Looking at individual holdings, Nucor Corp (NUE) accounts for about 3.43% of total assets, followed by Eaton Corp Plc (ETN) and Rockwell Automation Inc (ROK).

The top 10 holdings account for about 30.16% of total assets under management.

Performance and Risk

The ETF has gained about 36.78% so far this year and is up roughly 37.04% in the last one year (as of 12/08/2021). In that past 52-week period, it has traded between $20.67 and $29.01.

The ETF has a beta of 1.31 and standard deviation of 30.95% for the trailing three-year period. With about 90 holdings, it effectively diversifies company-specific risk.


Global X U.S. Infrastructure Development ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PAVE is an excellent option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $796.49 million in assets, iShares Global Infrastructure ETF has $3.13 billion. GRID has an expense ratio of 0.70% and IGF charges 0.43%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Global X U.S. Infrastructure Development ETF (PAVE): ETF Research Reports


Nucor Corporation (NUE): Free Stock Analysis Report


Eaton Corporation, PLC (ETN): Free Stock Analysis Report


Rockwell Automation, Inc. (ROK): Free Stock Analysis Report


iShares Global Infrastructure ETF (IGF): ETF Research Reports


First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): ETF Research Reports


To read this article on click here.


Zacks Investment Research