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Global X brings US infrastructure ETF to Australia

Global X ETFs has launched the Global X US Infrastructure Development ETF (PAVE) on the ASX, allowing Australians access to the strategy followed by the world's largest US infrastructure development fund.

PAVE, which tracks the Indxx US Infrastructure Development Index, invests in companies that are expected to benefit from increased infrastructure investment in the US. This includes companies involved in the production of raw materials, heavy equipment, engineering, and construction.

Global X chief executive Evan Metcalf said the strategic importance of exposure to infrastructure development is in alignment to Global X's investment approach.

"Infrastructure development, which is distinct from investing in infrastructure assets themselves, is critical for the growth and modernisation of any economy," Metcalf said.

"Within the US, recent legislative acts are directing substantial funding towards infrastructure initiatives, signalling enormous growth potential for companies in this sector."

Metcalf added that the investment opportunity aligns with Global X's investment thesis of research and innovation.

"Building on our successful track record of pioneering thematic products in Australia - including recent launches across crypto, technology, and AI - we are excited to introduce this unique infrastructure development ETF to Australian investors," Metcalf said.

Global X head of investment strategy Scott Helfstein said he was feeling optimistic about the long-term growth potential of infrastructure services.

"The US infrastructure sector is facing an urgent need for development. As recent as 2021, the American Society of Civil Engineers assigned US infrastructure a 'poor grade', highlighting significant deficiencies which must be addressed," he said.

"This has spurred several long-term legislative catalysts including the IIJA and CHIPS Act, amounting to nearly US$2 trillion in federal investment.

"PAVE stands uniquely positioned to capitalise on this momentum, offering a balanced portfolio that strategically leverages these long-term trends. This provides investors with opportunities for both stability and growth, enabling them an opportunity to participate in this transformative period."

This follows several other ETF launches by Global X in recent months, including the Global X Cybersecurity ETF (BUGG) and Global X Artificial Intelligence ETF (GXAI).

Read more: Global XASXEvan MetcalfScott Helfstein