PAVE ETF

The infrastructure in the United States is in bad condition. In its last report card from 2021, the American Society of Civil Engineers rated it just above failing with a grade of C-.

PAVE has a Hold rating because of expected budget cuts during Trump's presidency, which may reduce federal spending on infrastructure and affect the ETF's performance. Although PAVE's focus on industrials has led to better results than the S&P 500, there are worries about its high valuation and a lack of strong future drivers. Trump's economic strategies prioritize private investment and less regulation, which could create challenges for infrastructure ETFs that depend on government support.

If you want to gain a wide understanding of the Utilities - Infrastructure part of the stock market, consider the Global X U.S. Infrastructure Development ETF (PAVE). This is a passively managed exchange-traded fund that started on March 6, 2017.

The Global X U.S. Infrastructure Development ETF has done well in the past few years because of a positive economic environment. However, I think some of the advantages in this sector may soon change. Even though PAVE has recently performed better than expected, its long-term results are similar to the S&P 500, indicating that it might not have much room for growth.

PAVE ETF focuses on U.S. companies involved in infrastructure, taking advantage of government investments and ongoing infrastructure demands, with an expense ratio of 0.47% and $7.88 billion in assets under management. It has an expected earnings growth rate of 10.43%, but I estimate a more cautious range of 7.8-9.7%, indicating a possible annual return of 9.41%. While PAVE's valuation is reasonable, it may not be very attractive due to uncertainties around elections and the risk of being overvalued in the long run, as shown by its current P/E ratio of 20.93x, which may not be sustainable.

The Global X U.S. Infrastructure Development ETF (PAVE) was launched on June 3, 2017. It is a passively managed exchange-traded fund that aims to give investors wide access to the Utilities - Infrastructure part of the stock market.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Global X US Infrastructure Development ETF (PAVE) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.

VettaFi's Head of Research Todd Rosenbluth discussed the Global X US Infrastructure Development ETF (PAVE) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

Global growth estimates for 2024 are increasing, but election risk is causing volatility in some markets, with infrastructure firms showing some weakness. The Global X U.S. Infrastructure Development ETF has seen a surge in assets under management, but its valuation and momentum are concerning after the big rally since Q4 2023. PAVE has high exposure to cyclical sectors and has endured relative weakness recently, but bullish seasonal trends may support near-term price action.