5 Best Infrastructure ETFs

2. Global X U.S. Infrastructure Development ETF (BATS:PAVE)

5-Year Performance as of September 25: 77.04%

The Global X U.S. Infrastructure Development ETF (BATS:PAVE) seeks to match the performance of the Indxx U.S. Infrastructure Development Index. This index includes companies positioned to benefit from increased infrastructure activity in the United States. These companies are involved in different sectors, such as raw material production, heavy equipment, engineering, and construction. Global X U.S. Infrastructure Development ETF (BATS:PAVE) was launched on March 6, 2017, with net assets of $5.04 billion as of September 25, 2023. It has an expense ratio of 0.47%. The fund has a portfolio comprising 98 stocks as of September 25, 2023. Global X U.S. Infrastructure Development ETF (BATS:PAVE), based on its 5-year performance, is one of the best performing infrastructure ETFs.

Parker-Hannifin Corporation (NYSE:PH) is one of the largest holdings of the Global X U.S. Infrastructure Development ETF (BATS:PAVE). Parker-Hannifin Corporation (NYSE:PH) is a global manufacturer involved in producing and distributing motion and control technologies and systems. Their products cater to a range of industries, including mobile, industrial, and aerospace. The company functions through two segments – Diversified Industrial and Aerospace Systems. 

According to Insider Monkey’s second quarter database, 41 hedge funds were bullish on Parker-Hannifin Corporation (NYSE:PH), compared to the last quarter when 49 funds had invested in the stock. Harris Associates is the largest stakeholder of the company, with 2.26 million shares worth $883.16 million.

Here is what Aristotle Value Equity has to say about Parker-Hannifin Corporation (NYSE:PH) in its Q2 2023 investor letter:

“Parker Hannifin, the manufacturer of motion and control technologies, was a primary contributor during the quarter. In the latter half of 2022, the company closed on the acquisition of Meggitt. The cash transaction value of £7 billion (approximately $8.5 billion) was modest compared to the firm’s enterprise value of ~$50 billion, however a meaningful indication of management’s prowess. This, in our opinion, is a very well‐timed combination, as Meggitt adds complementary aerospace and defense businesses to an already existing strong portfolio. It should also support Parker Hannifin’s goal of shifting its portfolio toward aftermarket exposure—a catalyst we had identified for the company—since aftermarket sales are typically higher margin and result in more predictable recurring revenues than original‐equipment sales. Importantly, Parker Hannifin is no stranger to successful acquisitions, having integrated dozens (though mostly smaller than Meggitt) throughout its history. As such, we look forward to the prospect of the latest combination, further positioning the company to achieve new heights.”