What assets are set to score a boost after the U.S. Senate passed a roughly $1 trillion infrastructure package with broad bipartisan support Tuesday, putting it on track to possibly be passed by the House and be signed into law by President Joe Biden?
“The passage of the infrastructure bill is a nice headline but unlikely to be a big market mover at this point,” wrote Brian Price, head of investment management at Commonwealth Financial Network in emailed remarks. A popular exchange-traded fund that offers exposure to stocks that would benefit from an infrastructure bill, the Global X U.S. Infrastructure Development ETF PAVE, +2.19%, was up 2.2% on Tuesday and has climbed 4.7% within the past 30 days, FactSet data show.
Similarly, the iShares U.S. Infrastructure ETF IFRA, +1.45%, another way to play infrastructure, rose 1.3% on Tuesday and is up nearly 22% in the first eight months of the year. The iShares ETF also includes 20 electric utilities and four water utilities, and for that reason isn’t always viewed as a pure-play infrastructure fund.
Overall, the investment in infrastructure is the biggest investment in roads, bridges and tunnels and other areas of America’s inner workings in a generation.