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PAVE

US Infrastructure Development ETF

Invest in PAVE
Overview Performance Holdings & Characteristics Research Documents Announcements FAQs

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 27 Jun 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 27 Jun 2024

NAV/Unit (A$) 9.76080000
Currency (NAV) AUD
Shares Outstanding 200,000
AUM (A$) 1,952,163.90
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

Performance Table As of 27 Jun 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -- -- -- --
3 Months -- -- -- --
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception -2.39% -2.37% -0.03% 0.67%

Top Holdings As of 28 Jun 2024

Full Holdings (.xlsx)
Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
3.64 TRANE TECHNOLOGI BK9ZQ96 333.65 142 71,155
3.57 EATON CORP PLC B8KQN82 313.94 148 69,780
3.21 QUANTA SERVICES 2150204 267.06 156 62,569
3.13 EMERSON ELEC CO 2313405 108.29 376 61,150
2.98 MARTIN MAR MTLS 2572079 538.29 72 58,207
2.97 UNITED RENTALS 2134781 623.04 62 58,014
2.95 PARKER HANNIFIN 2671501 504.22 76 57,552
2.93 SEMPRA 2138158 75.94 502 57,253
2.74 VULCAN MATERIALS 2931205 247.76 144 53,582
2.72 HOWMET AEROSPACE BKLJ8V2 79.60 444 53,079
2.66 DEERE & CO 2261203 375.32 92 51,858
2.62 CSX CORP 2160753 33.03 1,032 51,193
2.54 UNION PAC CORP 2914734 223.47 148 49,671
2.52 FASTENAL CO 2332262 63.33 518 49,268
2.49 NUCOR CORP 2651086 154.17 210 48,623
2.43 ROCKWELL AUTOMAT 2754060 267.66 118 47,434
2.42 NORFOLK SOUTHERN 2641894 209.90 150 47,285
2.15 FORTIVE CORP BYT3MK1 73.57 380 41,986
1.67 STEEL DYNAMICS 2849472 124.59 174 32,558
1.65 HUBBELL INC BDFG6S3 369.84 58 32,216
1.65 CARLISLE COS INC 2176318 411.23 52 32,115
1.55 WESTLAKE CORP B01ZP20 146.00 138 30,259
1.46 JACOBS SOLUTIONS BNGC0D3 139.45 136 28,483
1.42 EMCOR GROUP INC 2474164 370.38 50 27,813
1.42 BUILDERS FIRSTSO B0BV2M7 137.86 134 27,744
1.34 RELIANCE INC 2729068 280.64 62 26,132
1.26 IDEX CORP 2456612 200.15 82 24,649
1.15 RPM INTL INC 2756174 107.21 140 22,542
1.14 TRIMBLE INC 2903958 55.42 268 22,306
1.11 GRACO INC 2380443 79.25 182 21,662
1.04 ADVANCED DRAINAG BP7RS59 161.45 84 20,368
1.04 PENTAIR PLC BLS09M3 76.05 178 20,330
1.00 AECOM B1VZ431 88.89 146 19,491
1.00 TOPBUILD COR BZ0P3W2 381.45 34 19,478
0.96 TETRA TECH INC 2883890 215.05 58 18,732
0.89 LINCOLN ELECTRIC 2516851 186.40 62 17,356
0.87 WOODWARD INC 2948089 177.29 64 17,041
0.75 REGAL REXNORD CO 2730082 136.08 72 14,715
0.72 MASTEC INC 2155306 109.26 86 14,112
0.72 TUTOR PERINI COR 2681760 21.95 424 13,977
0.69 CRANE CO BNYD4F8 144.70 62 13,474
0.69 US STEEL CORP 2824770 36.80 242 13,375
0.68 WESCO INTL 2416973 158.30 56 13,314
0.67 RBC BEARINGS INC B0GLYB5 271.07 32 13,027
0.63 ACUITY BRANDS 2818461 242.51 34 12,383
0.63 CLEVELAND-CLIFFS BYVZ186 15.00 546 12,300
0.63 EAGLE MATERIALS 2191399 215.00 38 12,270
0.60 ATI INC 2526117 56.52 138 11,714
0.57 ALCOA CORP BYNF418 38.82 192 11,194
0.54 SPX TECHNOLOGIES BQ1L7V3 141.16 50 10,600
0.53 MUELLER INDS 2609717 56.56 122 10,363
0.52 COMMERCIAL METAL 2213260 53.49 126 10,122
0.50 POWELL INDS INC 2697422 142.09 46 9,816
0.49 LOUISIANA-PACIFI 2535243 82.39 78 9,651
0.46 VALMONT INDS 2926825 273.90 22 9,050
0.46 ARGAN INC 2804501 73.33 82 9,031
0.46 STERLING INFRAST 2632876 119.33 50 8,961
0.46 BADGER METER INC 2069128 186.14 32 8,946
0.44 CARPENTER TECH 2177504 107.06 54 8,683
0.44 US LIME & MINERA 2724115 360.79 16 8,670
0.43 PRIMORIS SERVICE B1GC200 51.13 110 8,447
0.42 MDU RES GROUP 2547323 25.02 220 8,267
0.42 DYCOM INDS 2289841 170.33 32 8,186
0.42 ZURN ELKAY WATER BMV1ZD3 29.16 186 8,146
0.41 ATKORE INC BDHF495 132.53 40 7,962
0.40 EXPONENT INC 2330318 95.62 54 7,755
0.39 CENTURY ALUMINUM 2186254 15.91 320 7,646
0.39 DXP ENTERPRISES 2276627 45.24 112 7,610
0.38 DNOW INC BMH0MV1 13.51 366 7,426
0.38 GRANITE CONSTR 2381189 61.45 80 7,383
0.37 CONSTRUCTION P-A BDT5M66 55.22 86 7,132
0.36 SUMMIT MATERIA-A BW9JPS4 36.37 130 7,101
0.34 MUELLER WATER-A B15RZR4 17.61 254 6,718
0.34 MINERALS TECH 2595612 82.70 54 6,707
0.33 MRC GLOBAL INC B7M66F1 12.50 348 6,533
0.33 KNIFE RIVER BPLL4V5 70.06 62 6,524
0.33 ARCOSA INC BGPZ5W8 82.41 52 6,436
0.33 CSW INDUSTRI INC BYQD1J6 264.46 16 6,355
0.32 NORTHWEST PIPE 2035925 33.30 126 6,301
0.32 TRINITY INDUSTRI 2904627 29.67 140 6,238
0.31 HAYNES INTL INC B02WVH7 58.45 68 5,969
0.30 HERC HOLDINGS IN BZBZ020 130.82 30 5,894
0.30 GORMAN-RUPP CO 2379281 35.97 108 5,834
0.30 GREENBRIER COS 2387530 49.80 78 5,834
0.29 TEREX CORP 2884224 53.18 72 5,750
0.29 CRANE NXT CO BQ7W2W6 60.12 62 5,598
0.28 MYR GROUP INC/DE B3CLS18 138.27 26 5,399
0.28 METALLUS INC BNBPMX1 20.12 178 5,379
0.26 COLUMBUS MCKI/NY 2211071 34.59 96 4,987
0.25 MATERION CORP 2149622 107.38 30 4,838
0.24 INSTEEL INDS 2325875 30.01 106 4,777
0.24 GIBRALTAR INDUST 2369226 68.46 46 4,730
0.24 H&E EQUIPMENT SE B0WR848 43.80 70 4,605
0.23 ASTEC INDUSTRIES 2060370 29.36 104 4,586
0.23 WABASH NATIONAL 2932048 21.46 142 4,577
0.22 CALIX INC B3S4L67 35.39 82 4,358
0.19 CUSTOM TRUCK ONE BL66YS4 4.35 566 3,698
0.16 TITAN MACHINERY B29H3T5 15.98 134 3,216
0.16 RYERSON HOLDING B3TPPZ6 19.22 108 3,117
Holdings are subject to change.

Sector Breakdown As of 28 Jun 2024

Sector Weight (%)
Industrials 72.4
Materials 21.4
Utilities 2.9
Information Technology 2.1
Consumer Discretionary 1.0
Other/Cash 0.2

Country Breakdown As of 28 Jun 2024

Country Weight (%)
United States 95.1
Ireland 3.6
Britain 1.0
Other/Cash 0.3

Research

Introducing PAVE: The Resurgence of US Infrastructure

Read More

Documents




Announcements/Notices

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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