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By DailyAlts Staff Investors seeking exposure to global infrastructure assets have a new and attractive option, thanks to the February 11 launch of the Guggenheim High Income Infrastructure ETF (NYSEARCA: GHII ). The new ETF is the first infrastructure ETF to weight its holdings according to 12-month trailing dividend yield, rather than market capitalization or some other measure. The result is an investment vehicle that provides exposure to public services, toll roads, airports, water, pipelines, utilities, and other essential services around the world, with a focus on generating current income for its investors. Global Exposure The Guggenheim High Income Infrastructure ETF tracks the S&P High Income Infrastructure Index, which is composed of the S&P Global BMI’s 50 highest-dividend-paying companies in the energy, transportation, and utilities sectors. The fund and its underlying index have a global footprint, with only about one-fifth of components domiciled in the United States. The fund’s top holdings include investments in Australia (14%), China (9%), Spain (8%), and Italy (8%); and it also has significant exposure to infrastructure assets in Britain, Canada, Singapore, and France. “The infrastructure asset class offers investors the opportunity to realize enhanced return and capital appreciation,” said a Guggenheim spokesperson. “Offering strong cash flow potential, assets with typically long life spans, as well as relatively low volatility and significant barriers to entry, infrastructure provides investors with access to an emerging segment of the market aligned with the global recovery.” Continued Infrastructure Spending The launch of the Guggenheim High Income Infrastructure ETF appears to be well-timed, as governments around the world – despite fiscal and monetary woes – are planning ambitious new rounds of infrastructure spending. Oxford Economics and PwC project global infrastructure spending will total nearly $78 trillion between 2014 and 2025; with about 60% of that attributable to the Asia Pacific. In the U.S., the White House says that infrastructure investment will continue to be needed even after the economy reaches full employment, but that “time is running out to make these needed investments under ideal economic conditions.” Shares of the Guggenheim High Income Infrastructure ETF face an expense ratio of 0.45% – two basis points less than the 0.47% charged by the rival iShares Global Infrastructure ETF (NYSEARCA: IGF ). Scalper1 News
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