BKGI: An Outperforming ETF In An Important Asset Class
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.
The Perks of Looking Beyond Traditional Infrastructure Assets
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.
The Long-Term Benefits of Expanded Infrastructure Investing
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.
BKGI: This Infrastructure Fund Could Be A Good Option For Income
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: Cheap Holdings With Stellar Performance
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.
BKGI: Good Equity-Income Balance, But Poor Geo Spread And Highly Tariff-Sensitive
ETFs surpassed $10 trillion in assets in 2024, with significant growth in equity and fixed-income ETFs, despite political uncertainties impacting equity ETF flows. The Bny Mellon Global Infrastructure Income ETF offers a 5.55% yield, targeting 6%, providing stability and compensating for equity volatility. BKGI's focus on infrastructure equities, utilities, energy, and industrial stocks makes it resilient against geopolitical risks but vulnerable to tariff impacts on raw materials.
