SPDR S&P Global Infrastructure ETF

GII

Market cap $630M

The article compares SPDR S&P Global Infrastructure ETF (GII) and iShares Global Infrastructure ETF (IGF), both tracking the S&P Global Infrastructure Index. Downgrade to 'hold' due to high prices, stagnating momentum, and increased volatility; a better entry point may come after a price correction. IGF is favored over GII for its superior liquidity and lower expense ratio, despite GII's slightly better risk-adjusted metrics and lower volatility.

GII is a buy for exposure to global infrastructure, benefiting from AI, renewables, and urbanization megatrends driving robust long-term demand. The ETF offers a high dividend yield, resilient industry exposure, and global diversification, positioning it well for future growth. While GII outperforms its peers despite a slightly higher expense ratio and lower liquidity, its concentration and trading volume present moderate risks.

Outlook for infrastructure stocks. Why infrastructure stocks have avoided broader market volatility.

Infrastructure is a crucial foundation for any kind of society attempting to expand beyond a handful of individual, nearby homesteads in order to form a community.

The S&P Global Infrastructure ETF offers broad diversification across energy, industrials, utilities, and transportation sectors. Despite its unique portfolio, GII has underperformed compared to sector-specific ETFs and even its rival iShares Global Infrastructure ETF. GII's recent performance shows promise, but its long-term returns have been mediocre, and I'm not convinced that the trend has changed.

Retirees looking to invest in long-life cash flow-generative assets to help bolster their portfolio's dividend growth and diversification may wish to check out some of the infrastructure plays.

GII ETF focuses on infrastructure plays including utilities, energy generation, and transportation, with a lower expense ratio compared to IGF. Significant allocation towards US and EU utilities, with electricity prices playing a role in performance in PPA negotiations. Transportation stocks and energy infrastructure make up the rest of the portfolio, offering a significant investment sink with an improving ROIC-WACC wedge if rates fall.

Positive factors impacting the outlook for U.S. infrastructure ETFs are strong demand for U.S. infrastructure improvement and bipartisan support for government funding.

Infrastructure is crucial for economic growth and development, with a need for more build-out globally. SPDR S&P Global Infrastructure ETF tracks 75 of the world's largest infrastructure companies, providing exposure to well-established carriers on a passive basis. GII offers strong global exposure, balanced sector weightings, and potential for outperformance, making it a fund worth considering for investors.

As the first quarter comes to a close, clearly, there have been some thematic winners in terms of flows and investment performance. Artificial Intelligence AI-themed ETFs remain among the top recipients of investor flows this year.