Should You Invest in the Global X U.S. Infrastructure Development ETF (PAVE)?

Designed to provide broad exposure to the Utilities - Infrastructure segment of the equity market, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund launched on 03/06/2017.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $9.12 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.

The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.47%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.54%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Industrials sector--about 74.10% of the portfolio. Materials and Utilities round out the top three.

Looking at individual holdings, Howmet Aerospace Inc (HWM) accounts for about 4.22% of total assets, followed by Fastenal Co (FAST) and Quanta Services Inc (PWR).

The top 10 holdings account for about 32.52% of total assets under management.

Performance and Risk

So far this year, PAVE return is roughly 14.48%, and it's up approximately 18.22% in the last one year (as of 07/24/2025). During this past 52-week period, the fund has traded between $33.78 and $46.15.

The ETF has a beta of 1.23 and standard deviation of 21.47% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.

Alternatives

Global X U.S. Infrastructure Development ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PAVE is a great option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID) tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF has $2.94 billion in assets, iShares Global Infrastructure ETF has $7.57 billion. GRID has an expense ratio of 0.56% and IGF charges 0.42%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research