Donald Trumps plan to invest up to $1 trillion in domestic infrastructure projects has U.S. infrastructure investors excited about the potential tailwinds that government projects could provide in the market over the next decade.
Traditionally, infrastructure stocks include construction and materials stocks such as Vulcan Materials Company (NYSE:VMC) and Martin Marietta Materials, Inc. (NYSE:MLM). However, Kensho Indices has put together an infrastructure index that focuses on the technology integration that will be key to the next decade of American infrastructure spending.
The New Economies Intelligent Infrastructure sector captures the full range of developments from smart buildings and road networks to smart grids that use sensors and intelligent meters to manage power lines and optimize power consumption, Kensho explains on its website.
The firm has put together the Kensho Intelligent Infrastructure Index (KINFRA), an index of U.S. companies that should play an important role in the new market of intelligent infrastructure.
In the past year, the index is up 38.8 percent compared to only a 25.1 percent gain for the SPDR S&P 500 ETF Trust (NYSE:SPY) and a 16.1 percent gain from the iShares S&P Global Infrastructure Index (NASDAQ:IGF).
The IGF ETF, which is one the most heavily-traded infrastructure ETF on the market today, is only about 40 percent allocated to U.S. stocks. KINFRA holdings are more than 75 percent American companies.
Top KINFRA holdings include Roper Technologies Inc (NYSE:ROP), ABB Ltd (ADR) (NYSE:ABB) and Toro Co (NYSE:TTC).
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