Global X brings the world’s largest infrastructure development fund to Australia
Global X ETFs has launched the Global X US Infrastructure Development ETF (ASX: PAVE) on the ASX, allowing Australians exclusive access to the strategy followed by the world’s largest US infrastructure development fund.
PAVE, which tracks the Indxx US Infrastructure Development Index, is designed to invest in companies that are expected to benefit from increased infrastructure investment in the US. This includes companies involved in the production of raw materials, heavy equipment, engineering, and construction.
Global X ETFs CEO Evan Metcalf (pictured) emphasised the strategic importance of exposure to infrastructure development in alignment to Global X’s investment approach.
“Infrastructure development, which is distinct from investing in infrastructure assets themselves, is critical for the growth and modernisation of any economy. Within the US, recent legislative acts are directing substantial funding towards infrastructure initiatives, signalling enormous growth potential for companies in this sector.
“This investment opportunity aligns strongly with our core investment thesis of research and innovation. Building on our successful track record of pioneering thematic products in Australia – including recent launches across crypto, technology, and AI – we are excited to introduce this unique infrastructure development ETF to Australian investors,” said Metcalf.
Scott Helfstein, Head of Investment Strategy at Global X ETFs added context around the long-term growth potential of infrastructure services in today’s market.
“The US infrastructure sector is facing an urgent need for development. As recent as 2021, the American Society of Civil Engineers assigned US infrastructure a ‘poor grade’, highlighting significant deficiencies which must be addressed. This has spurred several long-term legislative catalysts including the IIJA and CHIPS Act, amounting to nearly US$2 trillion in federal investment.
“PAVE stands uniquely positioned to capitalise on this momentum, offering a balanced portfolio that strategically leverages these long-term trends. This provides investors with opportunities for both stability and growth, enabling them an opportunity to participate in this transformative period.”
PAVE is the 38th product to join the company’s strong product lineup in Australia. It follows the recent launches of several innovative thematic ETFs, including the Global X Cybersecurity ETF (ASX: BUGG) and Global X Artificial Intelligence ETF (ASX: GXAI).
