Approfondimenti

Accessing Infrastructure: Meeting the Challenge with an ETF


ETF Strategist

Attribute

Investment Benefit

Industry Example

Monopolistic

High barriers to entry: initial capital outlay and strict regulations

Revenue streams are protected

Toll roads, airports, railroads

Regulated utilities: electricity, gas, water

Oil & gas pipelines

Satellites

Inelastic Demand

Less sensitive to business cycle

Electricity, gas, water

Towers, satellites

Social infrastructure

Predictable Long-Term Returns

Assets are long-lived

Steady user demand

Reliable cash flows

Toll roads

Regulated utilities: electricity, gas, water

Oil & gas pipelines

Inflation-Linked

Real assets: long-term asset appreciation, in line with inflation

Concessions permitting rent escalations linked to inflation

Toll roads, airports, railroads

Regulated utilities: electricity, gas, water

 

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