NEW YORK, March 8, 2017 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X U.S. Infrastructure Development ETF (BATS: PAVE). Designed to track the Indxx U.S. Infrastructure Development Index, the fund holds a basket of companies involved in the maintenance and development of infrastructure projects, including those involved in construction & engineering; the production of materials and composites; the transportation of those materials; and the distribution of heavy machinery.
In 2013, the American Society of Civil Engineers (ASCE) released its quadrennial "Infrastructure Report Card" which gave the U.S. a D+ rating. The cost identified to repair and modernize the nation's infrastructure is estimated to eclipse $10 trillion by 2040, half of which is currently unfunded.1 PAVE invests primarily in companies involved in the construction and development aspects of infrastructure. This differs from some existing infrastructure funds that primarily hold the owners and operators of infrastructure, like utility and energy companies.
"In the past few years, we've seen the national discourse coming to a bipartisan agreement that the United States needs to heavily invest in rebuilding our national infrastructure. Many strategies, however, are focused on providing exposure to existing infrastructure assets, rather than the companies that should be heavily relied upon to maintain, update, and build new infrastructure projects," said Jay Jacobs, director of research at Global X. "Our focus has always been on bringing products to market that offer investors access to untapped market segments, and PAVE is a continuation of this goal."
PAVE provides exposure to companies that can potentially benefit from both the $5 trillion in currently funded projects, as well as those that could benefit from additional stimulus. The companies held in PAVE can potentially benefit from private and public spending; from both development of new projects and general upkeep; and over the course of multiyear-long projects.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
Investing involves risk, including possible loss of principal. Narrowly focused investments typically exhibit higher volatility. The fund is non-diversified. There is no guarantee the strategy will be successful.
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's full and summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
1 Source: American Society of Civil Engineers, 'Failure to Act', 2016.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/global-x-funds-announces-launch-of-us-infrastructure-development-etf-pave-300420292.html
SOURCE Global X Funds