The Macquarie Global Listed Infrastructure ETF (BILD) seeks to provide exposure to global listed infrastructure companies that own and operate essential infrastructure assets like utilities, transportation networks, and communication systems. This international infrastructure ETF targets companies generating stable cash flows from critical infrastructure services worldwide.
How It Works
BILD employs an actively managed approach to select global listed infrastructure companies across developed and emerging markets. The fund focuses on companies deriving substantial revenue from infrastructure assets including toll roads, airports, utilities, pipelines, and telecommunications networks. Portfolio construction emphasizes companies with predictable cash flows, inflation-hedging characteristics, and essential service monopolies. The fund typically holds 40-80 positions with geographic diversification across North America, Europe, Asia-Pacific, and emerging markets.
Key Features
- High 5.10% dividend yield from infrastructure companies known for stable, inflation-linked cash flows and regular distributions
- Active management allows selective exposure to highest-quality infrastructure assets rather than broad index replication
- Recently launched in November 2023, offering modern portfolio construction with focus on essential infrastructure services
Risks
- This ETF can lose value if interest rates rise significantly, as infrastructure companies' high dividend yields become less attractive relative to bonds
- Currency fluctuations can impact returns since the fund holds international companies whose revenues are denominated in foreign currencies
- Regulatory changes affecting utility rates, toll pricing, or infrastructure spending could reduce company profitability and dividend payments by 10-30%
Who Should Own This
Best suited for income-focused investors with 3-7 year time horizons seeking inflation protection and steady dividends. Medium risk tolerance required due to interest rate sensitivity and international exposure. Works as satellite holding (5-15% of portfolio) for diversification beyond traditional stocks and bonds, particularly valuable during inflationary periods.