John Hood
BMO Global Infrastructure ETF
ZGI-T
COMMENT
Jun 24, 2015
When he looks at global infrastructure ETF’s, it always sounds like a pretty good idea. However, what he has found with any of these is that they’ve all got pretty much the same stuff in them. He didn’t go into this because he didn’t think there is enough diversification in the area to make it attractive for him. A lot of this is State infrastructure and he hasn’t been able to see where the money is being made.
(Top Pick Mar 17/15, Down 9.05%)he hoped it was more inflation proof. It did better than other things but is still down. He got rid of it less than a month ago. There are other ways to do the same thing now.
Not a pure play infrastructure product. You are not actually holding airports, roads, etc., you are holding companies that are involved in the construction and maintenance of those businesses.
[Global Infrastructure ETF for 10-15 year hold.] A lot of these ETFs have pipelines, real estate and telecom. You won’t get a lot of investment in telecom. There is not a perfect ETF to just play the best infrastructure. 10-15 years does not work for him
This is infrastructure and global. A lot of that ends up in being in energy, and there are some issues around that. On the other hand, the infrastructure area, particularly in the US, is probably not a bad bet.
BMO Global Infrastructure Index CAD (ZGI-T) or iShares Global Infrastructure IDX (CIF-T)? You could look at either one of these. There are some differences, but you could maybe split the amount you are using and Buy both.
Low-cost international infrastructure ETF Also, CIF, IGF and GII. Private markets have been big into infrastructure. Global infrastructure indexes are correlated to utilities which do well when rates decline. Also watch the high interest rate sensitivity of these. If you feel that the global economy has stabilized, then rates will drift higher--and infrastructure projects are very capital-intensive. What interest rates moving up, this is not the place to be.
The global infrastructure ETFs are not the way to play future infrastructure spending by countries. ZGI is a way to play traditional infrastructure like utilities, pipelines and telecos.
When he looks at global infrastructure ETF’s, it always sounds like a pretty good idea. However, what he has found with any of these is that they’ve all got pretty much the same stuff in them. He didn’t go into this because he didn’t think there is enough diversification in the area to make it attractive for him. A lot of this is State infrastructure and he hasn’t been able to see where the money is being made.