Considering that the Federal Reserve has been meeting this week, it's safe to say that inflation is likely front-and-center on the minds of many advisors and investors. After all, energy prices and supply chain constraints have kept inflationary pressures far more persistent than the Fed would like.
Broadly speaking, when advisors and investors are looking to dial into a particular sector for their portfolio, it's usually for either an offensive or defensive means. An infrastructure ETF can play both offense and defense, especially right now.
It seems like the momentum for the BNY Mellon Global Infrastructure Income ETF (BKGI) won't slow down any time soon. After hitting $1 billion in assets under management back in May, the fund has continued to pick up steam, sitting at a little over $1.1 billion in AUM as of June 23, 2026.
Infrastructure took center stage at VettaFi's Midyear Market Outlook Symposium on Thursday, drawing portfolio managers from Impax Asset Management and BNY Investments – Newton. Both argued that the asset class belongs in most portfolios as a dedicated allocation, not a tactical theme.
Inflation and geopolitical uncertainty are pushing advisors and investors to rethink how they build diversified portfolios. However, it's important to note that diversification comes in many different forms.
I coached my son's Little League baseball team for 10 seasons. There were often months-long gaps between when I would see the kids.
Those who decided to gain exposure to the global infrastructure industry last year were likely graced with good results. Just as one example, the BNY Mellon Global Infrastructure Income ETF (BKGI) enjoyed potent returns in 2025.
The BNY Mellon Global Infrastructure Income ETF offers active, global infrastructure exposure with 33 holdings and a 0.55% expense ratio. BKGI has outperformed its S&P Global Infrastructure benchmark, delivering 19.4% annualized returns vs. 13.6% over the past three years. The fund targets macro themes: energy transition, 5G networks, healthcare infrastructure, and public-private partnerships, supporting long-term defensiveness.
When one thinks about infrastructure investing, they tend to think about investments like bridges, roads, utilities, and pipelines. To be fair, these all certainly do qualify.
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.
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.
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.