US Infrastructure Development ETF - Global X ETFs - Australia

PAVE


US Infrastructure Development ETF

Reasons to Consider PAVE

Compelling Need

The American Society of Civil Engineers assigned a letter grade of C- to the state of US infrastructure in its 2021 report card, highlighting the need for investment.1

Multiple Long-Term Catalysts

America is committed to improving its aging infrastructure. The Infrastructure Investment and Jobs Act, Inflation Reduction Act, and CHIPS and Science Act appropriated nearly US$1 trillion to fund critical infrastructure projects.

Unconstrained Approach

As the economy evolves, so do infrastructure needs. PAVE seeks to capture this trend by investing in companies that are part of the infrastructure theme, regardless of sector or industry classification.

1 ASCE. (n.d.) Report Card For America’s Infrastructure.

Product Information As of 12 Nov 2024

Inception Date 3 Jun 2024
Management Costs (% p.a.) 0.47
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 12 Nov 2024

NAV/Unit (A$) 12.05280000
Currency (NAV) AUD
Shares Outstanding 575,000
AUM (A$) 6,930,365.78
NAV History File View

Product Summary

The Global X US Infrastructure Development ETF (PAVE) aims to capture a resurging focus on infrastructure in the world’s largest economy. It does so by investing in US-domiciled companies involved in the construction, engineering, material procurement, transportation, and equipment distribution processes of infrastructure projects.

Product Objective

The Global X US Infrastructure Development ETF seeks to provide investors with a return that (before fees and expenses) tracks the performance of the Indxx U.S. Infrastructure Development Index.

Trading Details

Ticker PAVE
Bloomberg Code PAVE AU Equity
ISIN AU0000333247
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Indxx U.S. Infrastructure Development Index
Provider Indxx Inc.
Ticker PAVE

Distributions

Distribution Frequency Semi-Annually
Distribution History View

Performance Table As of 12 Nov 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 10.37% 10.43% -0.07% 0.02%
3 Months 21.93% 22.14% -0.21% 0.03%
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 20.53% 20.88% -0.35% 0.04%

Top Holdings As of 13 Nov 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
3.71 Trane Technologies PLC BK9ZQ96 411.14 409 256,943
3.46 Eaton Corp PLC B8KQN82 368.99 425 239,622
3.42 United Rentals Inc 2134781 866.73 179 237,061
3.38 Parker-Hannifin Corp 2671501 699.32 219 234,015
3.25 Quanta Services Inc 2150204 327.27 450 225,031
3.20 Howmet Aerospace Inc BKLJ8V2 113.58 1,278 221,797
3.06 Emerson Electric Co 2313405 128.40 1,081 212,087
2.94 Sempra 2138158 92.20 1,444 203,433
2.77 Martin Marietta Materials Inc 2572079 606.79 207 191,925
2.74 Fastenal Co 2332262 83.50 1,490 190,106
2.63 Vulcan Materials Co 2931205 288.38 414 182,427
2.54 Norfolk Southern Corp 2641894 267.45 431 176,134
2.36 CSX Corp 2160753 36.13 2,967 163,798
2.31 Deere & Co 2261203 393.75 266 160,039
2.24 Union Pacific Corp 2914734 238.91 425 155,148
2.08 Rockwell Automation Inc 275406 277.88 340 144,364
2.05 Nucor Corp 2651086 153.89 603 141,792
1.81 Fortive Corp BYT3MK1 75.05 1,092 125,227
1.65 Hubbell Inc BDFG6S3 452.03 166 114,657
1.63 EMCOR Group Inc 2474164 514.08 144 113,114
1.59 Steel Dynamics Inc 2849472 144.35 501 110,504
1.52 Builders FirstSource Inc B0BV2M7 178.65 385 105,096
1.49 Carlisle Cos Inc 2176318 453.04 149 103,145
1.27 Jacobs Solutions Inc BNGC0D3 147.11 391 87,891
1.26 Reliance Inc 2729068 319.81 179 87,472
1.24 Trimble Inc 2903958 72.81 771 85,777
1.20 RPM International Inc 2756174 135.89 402 83,471
1.18 IDEX Corp 2456612 227.97 235 81,860
1.17 Pentair PLC BLS09M3 104.08 512 81,426
1.12 Westlake Corp B01ZP2 127.75 397 77,495
1.04 AECOM B1VZ431 112.16 420 71,980
1.02 Graco Inc 2380443 88.12 524 70,555
1.00 Powell Industries Inc 2697422 343.86 132 69,355
0.88 Tetra Tech Inc 288389 48.26 827 60,984
0.84 Lincoln Electric Holdings Inc 2516851 214.54 178 58,351
0.80 Argan Inc 2804501 154.14 235 55,349
0.79 Tutor Perini Corp 268176 29.23 1,219 54,445
0.78 Regal Rexnord Corp 2730082 170.54 207 53,941
0.78 TopBuild Corp BZ0P3W2 360.00 98 53,908
0.76 MasTec Inc 2155306 139.73 247 52,736
0.75 Eagle Materials Inc 2191399 310.37 109 51,693
0.73 WESCO International Inc 2416973 204.35 161 50,272
0.72 Mueller Industries Inc 2609717 93.45 351 50,120
0.71 Woodward Inc 2948089 175.23 184 49,266
0.71 Acuity Brands Inc 2818461 331.88 97 49,190
0.70 Advanced Drainage Systems Inc BP7RS59 130.97 241 48,229
0.69 United States Lime & Minerals 2724115 137.78 227 47,790
0.69 Crane Co BNYD4F8 177.00 178 48,141
0.64 RBC Bearings Inc B0GLYB5 315.37 92 44,333
0.61 United States Steel Corp 282477 40.03 695 42,510
0.60 Carpenter Technology Corp 2177504 176.70 155 41,850
0.60 Sterling Infrastructure Inc 2632876 191.50 143 41,844
0.56 Louisiana-Pacific Corp 2535243 112.78 224 38,601
0.56 Primoris Services Corp B1GC2 80.02 317 38,760
0.52 Construction Partners Inc BDT5M66 94.51 248 35,814
0.52 SPX Technologies Inc BQ1L7V3 164.56 143 35,957
0.51 ATI Inc 2526117 58.76 396 35,555
0.50 DXP Enterprises Inc/TX 2276627 69.95 322 34,417
0.50 Alcoa Corp BYNF418 40.95 552 34,540
0.49 Granite Construction Inc 2381189 97.23 230 34,171
0.49 Commercial Metals Co 221326 61.41 362 33,968
0.49 Valmont Industries Inc 2926825 345.23 64 33,761
0.46 Badger Meter Inc 2069128 225.02 92 31,632
0.46 Zurn Elkay Water Solutions Cor BMV1ZD3 39.33 535 32,152
0.43 Herc Holdings Inc BZBZ02 224.48 87 29,841
0.43 Northwest Pipe Co 2035925 53.96 362 29,847
0.43 Century Aluminum Co 2186254 21.19 920 29,788
0.42 CSW Industrials Inc BYQD1J6 418.07 46 29,385
0.41 Cleveland-Cliffs Inc BYVZ186 11.98 1,569 28,721
0.40 Mueller Water Products Inc B15RZR4 25.13 730 28,031
0.40 Summit Materials Inc BW9JPS4 48.99 373 27,922
0.38 Dycom Industries Inc 2289841 189.24 92 26,603
0.38 Knife River Corp BPLL4V5 96.51 178 26,249
0.35 DNOW Inc BMH0MV1 14.91 1,052 23,967
0.35 Exponent Inc 2330318 102.98 156 24,547
0.34 Trinity Industries Inc 2904627 38.28 403 23,572
0.34 Arcosa Inc BGPZ5W8 103.58 149 23,582
0.33 Greenbrier Cos Inc/The 238753 65.95 225 22,674
0.30 MRC Global Inc B7M66F1 13.55 1,000 20,704
0.29 Amentum Holdings Inc BMZLFJ5 31.24 425 20,287
0.28 Gorman-Rupp Co/The 2379281 41.67 310 19,738
0.28 Minerals Technologies Inc 2595612 80.83 156 19,267
0.27 H&E Equipment Services Inc B0WR848 59.67 202 18,418
0.26 Haynes International Inc B02WVH7 60.60 195 18,056
0.25 Astec Industries Inc 206037 37.94 299 17,334
0.25 MDU Resources Group Inc 2547323 18.01 632 17,392
0.25 MYR Group Inc B3CLS18 148.30 75 16,995
0.24 Terex Corp 2884224 53.23 207 16,836
0.24 Atkore Inc BDHF495 94.56 115 16,616
0.23 Columbus McKinnon Corp/NY 2211071 37.32 276 15,739
0.23 Materion Corp 2149622 119.04 87 15,825
0.22 Crane NXT Co BQ7W2W6 56.53 178 15,375
0.21 Everus Construction Group Inc BSVLTM2 61.03 158 14,734
0.21 Gibraltar Industries Inc 2369226 73.10 132 14,744
0.20 Insteel Industries Inc 2325875 29.34 304 13,629
0.18 Metallus Inc BNBPMX1 15.79 511 12,329
0.18 Custom Truck One Source Inc BL66YS4 4.99 1,627 12,405
0.18 Wabash National Corp 2932048 19.69 409 12,305
0.17 Calix Inc B3S4L67 32.50 235 11,670
0.17 Ryerson Holding Corp B3TPPZ6 25.04 310 11,861
0.12 Titan Machinery Inc B29H3T5 14.29 386 8,425
Holdings are subject to change.

Sector Breakdown As of 13 Nov 2024

Sector Weight (%)
Industrials 73.6
Materials 20.1
Utilities 3.2
Information Technology 2.1
Consumer Discretionary 0.8
Other/Cash 0.2

Country Breakdown As of 13 Nov 2024

Country Weight (%)
United States 94.9
Ireland 3.7
Britain 1.2
Other/Cash 0.2

Research

FAQs

  • Why invest in US infrastructure development?

    Infrastructure is one of the backbones of economic prosperity and societal well-being, and in the fast-paced modern era, it has never been more crucial. Despite being the world’s leading economy, the US’s outdated infrastructure assets are in dire need of a 21st century overhaul.

    According to the World Infrastructure Hub, the US currently requires at least US$3.8 trillion in additional investment to adequately repair existing infrastructure and keep pace with economic expansion.1 This figure marks the largest single country infrastructure investment gap in the world.2 However, these circumstances may soon change, as the US has sought to aggressively address these issues over the past few years. The IIJA, IRA, and CHIPS Acts introduced by the US government over the past three years offer billions in funding and incentives, showcasing an intent to foster a resurgence in US infrastructure investment. Backed by government policy, infrastructure development firms such as those focused on engineering, procurement of raw materials, and distribution of heavy machinery, could see a significant increase in demand, thus providing exposure to revenues derived from increased spending on both publicly and privately funded infrastructure projects.

    1. Global X ETFs. (June 3, 2023). Introducing PAVE: The Resurgence of US Infrastructure.
    2. Ibid.
  • How are the companies in the index identified and weighted?

    Global X US Infrastructure Development ETF (PAVE) seeks to track the Indxx U.S. Infrastructure Development Index which aims to capture the performance of companies that have or are expected to have significant exposure to infrastructure development in the United States.

    Companies are only eligible for inclusion if:

    • They have a minimum total market capitalisation of US$300 million.

    • They have a primary listing in the US.

    • They generate at least 50% of their revenues from the US.

    • They derive a significant portion of their revenues from construction and engineering, raw materials, products and equipment, or industrial transportation.

    The top 100 identified infrastructure development companies by market capitalisation will form the final index. Components are weighted according to market capitalisation subject to a maximum weight of 3% and minimum weight of 0.3%.

    For more information on the index methodology, please visit https://www.indxx.com/
  • How does PAVE invest in infrastructure companies?

    PAVE is a full replication ETF which tracks the Indxx U.S. Infrastructure Development Index by holding all securities in the same weighting as the index. PAVE shares an index with the CBOE-listed (US) Global X U.S. Infrastructure Development ETF (PAVE), which is managed by the Global X team in New York. PAVE (CBOE) is the largest infrastructure development ETF in the world with more than US$7.7 billion in assets under management as of June 2024.3

    3. Bloomberg. (n.d.) Accurate as of April 2024.
  • What are the benefits of using an ETF to access infrastructure development?

    An ETF allows diversified access to infrastructure companies at a low cost and reduced risk compared to individual stock picking. For example, the Global X US Infrastructure Development ETF (PAVE) seeks to invest in the full value-chain of companies that stand to benefit from the increased investment in infrastructure including construction and engineering, the production of raw materials, producers and distributors of heavy construction equipment, and companies engaged in the transportation of materials.
  • How can you use PAVE in a portfolio?

    • As a satellite portfolio component to gain exposure to increased infrastructure spending in the US.

    • As a thematic tilt towards other megatrends such as clean energy, electrification, and infrastructure for disruptive technologies.

    • As an alternative for traditional global infrastructure exposures or a diversification tool for major indices such as the S&P 500 and ASX 200.

    • To capture the resurgence of US infrastructure through companies that can derive additional revenues from increased spending infrastructure projects and stand to earn these additional revenues regardless of whether the project is maintenance of existing assets or developing new infrastructure.

    • It must be noted PAVE’s targeted approach may expose investors to sector concentration risk and is designed to be used as a satellite holding as a part of a well-diversified portfolio.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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