Loading…
Loading…
PAVE is an infrastructure ETF that functions as an AI power-buildout fund. The firms driving it are the ones wiring and servicing data centers. Global X U.S. Infrastructure Development ETF trades at 22.2x forward against the Industrials ETF at 26.3x, with higher forward EPS growth to boot. I look through the fund at its constituent holdings to see how the fund is positioned in forward P/E, EPS growth, net margins, and technical indicators. I'm optimistic.
The Global X U.S. Infrastructure Development ETF (PAVE) was launched on March 6, 2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Infrastructure segment of the equity market.
The Global X US Infrastructure Development ETF (PAVE) is positioned to benefit from hyperscaler AI infrastructure capex, offering less speculative exposure than mega-cap tech stocks. PAVE has outperformed the S&P 500 and Magnificent Seven over the past year, with a 29% total return and robust earnings growth in its holdings. With a diversified portfolio of 100 mid- and large-cap companies, PAVE reduces concentration risk and captures growth from data center and grid expansion.
I detail two of the best risk-reward opportunities today. I explain the powerful macro tailwinds that should drive strong dividend growth alongside very attractive 6.5-10% current yields. I also outline the risks involved in each investment.
Broadly speaking, when advisors and investors are looking to dial into a particular sector for their portfolio, it's usually for either an offensive or defensive means. An infrastructure ETF can play both offense and defense, especially right now.
Geopolitical shocks have pushed family offices to rethink nearly every corner of their portfolios. Infrastructure has emerged as the asset class they trust most right now.
Industrials have quietly stopped being a reshoring story and started being an AI infrastructure bet, and the distinction changes everything about where the rally goes from here.
The Industrial Select Sector SPDR Fund (NYSEARCA:XLI) is the default way most investors own U.S. industrials. It holds the industrial names in the S&P 500, providing broad exposure to aerospace, machinery, railroads, and defense at a low cost. XLI has done its job over the last year, returning 24.05% through July 7, 2026. The trouble... Broad Industrials Are Fine. This Infrastructure Fund Rode the AI Build-Out to 28%