BNY Mellon Global Infrastructure Income ETF

BKGI

Market cap $369M

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.

Matt Bartolini, State Street Head of SPDR Americas Research and John Davi, Astoria Portfolio Advisors CIO, sit down with CNBC's Dominic Chu to discuss how ETF investors are reacting to growing Middle East tensions

BNY offers a pair of zero-fee ETFs. One is a large-cap U.S. equity index ETF.

ETFs surpassed $10 trillion in assets in 2024, with significant growth in equity and fixed-income ETFs, despite political uncertainties impacting equity ETF flows. The Bny Mellon Global Infrastructure Income ETF offers a 5.55% yield, targeting 6%, providing stability and compensating for equity volatility. BKGI's focus on infrastructure equities, utilities, energy, and industrial stocks makes it resilient against geopolitical risks but vulnerable to tariff impacts on raw materials.

Looking for an investment theme that is working this year despite tariff headwinds and recession concerns? Global infrastructure ETFs are at the top of the winners list, with positive returns YTD.