BNY Mellon Global Infrastructure Income ETF

BKGI

Market cap $731M

The BNY Mellon Global Infrastructure Income ETF offers active, global infrastructure exposure with 33 holdings and a 0.55% expense ratio. BKGI has outperformed its S&P Global Infrastructure benchmark, delivering 19.4% annualized returns vs. 13.6% over the past three years. The fund targets macro themes: energy transition, 5G networks, healthcare infrastructure, and public-private partnerships, supporting long-term defensiveness.

A broad investment strategy encompassing infrastructure across developed markets can offer U.S. investors a way to ride along with economic trends at a discount to the price/earnings valuation of the S&P 500.

When one thinks about infrastructure investing, they tend to think about investments like bridges, roads, utilities, and pipelines. To be fair, these all certainly do qualify.

Considering all the headwinds and tailwinds facing the global macroeconomic environment right now, one sector that could be in a particularly interesting position moving forward is infrastructure.

Why should advisors and investors consider adding exposure to infrastructure companies in their portfolios? Furthermore, what does a global perspective on infrastructure exposure bring to a portfolio?

The Bny Mellon Global Infrastructure Income ETF targets high yield and total return, outperforming index peers since inception. BKGI's current yield is between 4% and 5%, below its 6% target, but still higher than most infrastructure ETFs. The fund is actively managed, heavily weighted toward utilities and energy infrastructure, and benefits from inflation protection and high dividend yields.

When interest in international stocks began picking up steam earlier this year, many primarily looked at these companies as a temporary safe haven from U.S. markets.  However, as 2025 has progressed, it's become increasingly apparent that international equities are more than a mere defensive position.

BKGI offers a compelling mix of growth, value, and income, outperforming passive peers with active management and exposure to global infrastructure megatrends. The fund's concentrated portfolio amplifies both returns and risks, but active management provides agility to navigate market volatility and regulatory challenges. BKGI's attractive valuation multiples and above-average dividend yield make it a standout choice for stability and income in a changing infrastructure landscape.

Many advisors are reassessing equity strategies and portfolio allocations amid the recent market mayhem and recognizing that diversification is more important than ever. A well-diversified portfolio can capture multiple sources of returns while hedging risk from individual markets or sectors.

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