The Global X U.S. Infrastructure Development ETF remains a "Buy," supported by bullish technicals and a solid valuation. Momentum is robust, with a B+ ETF Grade and a bullish $59 price target based on technical patterns. PAVE's portfolio is concentrated in Industrials and Materials, making it highly sensitive to U.S. GDP growth expectations.
Designed to provide broad exposure to the Utilities - Infrastructure segment of the equity market, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund launched on 03/06/2017.
I reiterate my buy rating on PAVE, citing strong momentum and robust inflows into Industrials and Materials sectors. PAVE benefits from a bullish technical setup, with a golden cross and RSI in a positive range, approaching all-time highs. The ETF's valuation remains reasonable, trading at a slight discount to the S&P 500, despite recent price appreciation.
| XMIL Exchange | US Country |
The company focuses on investment strategies that prioritize U.S. listed companies involved in the development of domestic infrastructure. It dedicates at least 80% of its total assets towards securities that are part of its underlying index. This index is specifically curated to gauge the performance of companies engaged in critical sectors such as construction and engineering, materials production relevant to infrastructure, industrial transportation, and the production and distribution of construction equipment. By targeting these key areas, the company aims to provide its investors exposure to the essentials of infrastructure development in the United States, reflecting the growth and innovation within this sector.
This service encompasses investment in a variety of securities that are part of the company’s carefully selected underlying index. The focus is on companies actively involved in the infrastructure sector in the U.S., including those in construction and engineering, materials production, and industrial transportation.
Part of the investment strategy is to gain exposure to companies in the construction and engineering sectors. These are firms that lead and manage the infrastructure projects shaping the urban and rural landscapes of the United States.
Recognizing the importance of materials and products in infrastructure development, this approach targets companies involved in the production of essential raw materials, composites, and products. These include but are not limited to, steel, cement, and construction composites.
The fund also invests in companies that play a critical role in industrial transportation. This includes firms that provide the logistics and transport services necessary for the large-scale movement of infrastructure materials and products.
Another focal point of investment is companies that produce or distribute heavy construction equipment. This equipment is vital for infrastructure projects, including road building, bridge construction, and large-scale urban development projects.