Electricity lines: Finally make energy transition possible (Photo: FreePik, Evening_tao)
Ailing streets, crumbling bridges and overloaded nets: Europe’s infrastructure is a case for the renovation team in many places. But with the Global X European Infrastructure Development Ucits ETF, investors can benefit from the multi -billion dollar modernization.
Infrastructure disaster: billions for dilapidated bridges and nets
The Carol Bridge in Dresden has become a symbol of decay. Caused traces, cracks in the concrete – this shows what decades of neglect can do. But this eyesore could soon become a stage for a new infrastructure offensive.
Because the signs are based on renewal: Germany is planning a special fund of 500 billion euros, which is intended to renovate ailing traffic routes, schools and energy networks. 320 billion euros of this alone should be intended for the expansion of the electricity routes in order to finally bring the energy transition to the fast lane.
The modernization thrust is not only limited to Germany. Europe -wide billions flow into streets, rails and digital networks. This is exactly where the Global X European Infrastructure Development Ucits ETF (ISIN: IE000PS0J481). The ETF focuses on companies that promote economic, social and digital infrastructure projects – from classic construction projects to digital transformation.
Construction and broadband: How the ETF Europe builds the future
The ETF depicts the Mirae Asset European Infrastructure Development Index and follows a unique approach: it combines physical infrastructure projects with digital networking. While traditional infrastructure ETFs often only rely on construction groups, telecommunications companies can also be found here in their portfolio. This makes him the first choice for investors who want to rely on the mix of concrete and broadband.
At the head of the Holdings is Vinci, the French infrastructure giant, with a weighting of 9 percent. Among other things, Vinci is driving the expansion of the transcontinental Mediterranean current motorway. Ferrovial is also well represented, a Spanish industrial group that is active in toll roads, airports and services. The airport operators Fraport and Airport Zürich AG are also prominently represented in the stock basket.
Particular attention is paid to the digital upgrade. Telefónica is one of the top values in the ETF, a pioneer in fiber optic expansion in rural regions. Spain, France and Italy are the regional focus of the fund. With a total cost rate of 0.47 percent, the ETF remains comparatively cheap. He has achieved an increase in value of 15 percent since the beginning of the year.
High potential, but also risks
The chances for long -term returns are there. The EU investment gap will be estimated at 2 trillion euros by 2040. This offers without end. But wherever investments are made, risks are also lurking. The shortage of skilled workers in the construction industry is a problem for many projects. Large projects such as the traffic project of German unity are not progressing because people are simply missing.
In addition, there are rising interest rates that drive up the financing costs for infrastructure projects. Even ambitious projects could stall if capital procurement becomes too expensive. In addition to the chance of modernization gains, investors should therefore also keep an eye on the risks.
Conclusion: infrastructure as an investment change?
The Global X European Infrastructure Development Ucits ETF offers one way to benefit from the investment boost in Europe. The mix of physical and digital infrastructure makes it an attractive option- especially for investors who rely on the Renaissance of European transport and energy networks. The low cost quota and the wide spread on different sectors also speak for the ETF.
But if you are committed, you should not ignore the risks: a shortage of skilled workers and rising interest rates could falter the proud plans. The question remains: building Europe’s politicians only air locks – or is there actually the foundation for long -term returns?
More ETFs for the turning point
- Armor ETF from Wisdomtree: It bundles the heavyweights of the European armaments industry, which, thanks to the billion -dollar defense programs, have a decade of growth.
- Bau-ETF from investco: Companies are represented here that benefit from the gigantic infrastructure measures. The modernization of streets, rails and energy networks will devour billions and build construction companies.
Disclaimer:
No investment advice. No call to buy or sell securities.