Most ETF investors associate the ProShares brand with
leveraged and inverse indexes designed to give traders an edge
with respect to market direction.
However, more recently this ETF provider has been focusing on
unique equity and fixed-income solutions designed to tap niche
Often times, being first to market in a previously uncovered
area of the ETF landscape is a huge advantage in terms of initial
assets, media attention and track record.
Its latest offering is the ProShares DJ Brookfield Global
Infrastructure ETF (NYSE:
), which invests in a global portfolio of companies focused on
providing transportation, communications, energy, and water
assets to our society.
TOLZ is the first pure-play infrastructure ETF that owns
companies in the business of operating toll roads, airports,
energy pipelines, electricity conduits and other essential
Top holdings include: National Grid (NYSE:
), American Towers (NYSE:
) and Enbridge (NYSE:
Many of the 121 underlying holdings are high income earners
structured as REITs or master limited partnerships that throw off
a considerable income stream. In fact, according to recent
data, the dividend yield on TOLZ is calculated at 3.88 percent
and income is paid on a quarterly basis.
Minimum Volatility ETFs Hit All-Time Highs
In addition, only 50 percent of the underlying holdings are
based in the United States, while the remaining 50 percent are
disbursed in both developed and emerging markets overseas.
This gives TOLZ a
truly global footprint
that is designed to capture a representative sample of
infrastructure industries around the world.
One of the advantages of investing in infrastructure companies
is that demand is quite steady and aging assets must be
continually updated or replaced. In addition, there is
often limited competition for companies that have exclusive
access to specific transportation or support services.
On the flip side, there is always a danger of natural
disasters or other unforeseen events crippling these key
assets. Fortunately, the inherent diversification qualities
of the ETF structure help mitigate these risks when compared to
investing directly in individual stocks.
TOLZ is undoubtedly another arrow in the global sector quiver
that can target a specific mix of equities designed to provide
both income and capital appreciation.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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