An infrastructure ETF invests in listed infrastructure companies in sectors like utilities, transportation, communications, energy and social facilities. An infrastructure ETF ASX can offer a simple, diversified way to invest in the backbone of the economy in a single ASX trade, instead of having to research and buy individual infrastructure stocks.

 The VanEck FTSE Global Infrastructure (AUD Hedged) ETF (IFRA) is a global infrastructure ETF that provides investors with a diversified portfolio of listed global infrastructure companies. Read more about infrastructure investing.

The global infrastructure ETF, IFRA, invests in a portfolio of listed companies in developed markets around the world that have at least 65% of their revenue attributable to core infrastructure activities and the related subsector of specialty REITs. Exposure to infrastructure subsectors is limited to 50% utilities, 30% transportation and 20% other infrastructure, such as pipelines. The infrastructure ETF, IFRA may invest in companies like Transurban Group, NextEra Energy Inc and Union Pacific Corp. View the full list of IFRA’s global infrastructure holdings.

As a global infrastructure ETF, IFRA can provide exposure to infrastructure assets such as gas, water, electricity and other utilities assets; roads, railways, airports and other transportation assets; as well as power generation, pipeline and other energy assets. An infrastructure ETF ASX like IFRA provides Australian investors with the opportunity to invest in the essential assets needed for the operation of functioning societies and today’s global economy. View IFRA’s current sector weightings.

In addition to diversification beyond traditional asset classes, a global infrastructure ETF like IFRA can provide relative protection from slowing economic growth, as the consumption of infrastructure services is largely unaffected by price fluctuations or the ups and downs of economic cycles. Infrastructure companies typically have relatively stable and predictable revenue streams and benefit from high barriers to entry that protect revenues and margins.

As IFRA is a global infrastructure ETF hedged strategy, it aims to reduce currency volatility through AUD currency hedging. The potential for inflation-linked and regular income is another appealing benefit for investors considering an infrastructure ETF. Download the brochure about investing in infrastructure.

Investors might consider an infrastructure ETF if they are seeking portfolio diversification and added resilience through economic cycles. Investors wishing to avoid currency volatility may consider hedging via a global infrastructure index ETF hedged strategy such as IFRA. A global infrastructure ETF is likely to be appropriate for an investor who is after capital growth and regular income, and who is intending to use the product as a minor or satellite allocation within a portfolio, has an investment timeframe of at least 5 years, and has a high to very high risk/return profile. For more information, read IFRA’s PDS and TMD.