ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) seeks to track the Dow Jones Brookfield Global Infrastructure Index, which measures the performance of global infrastructure companies including utilities, transportation, energy infrastructure, and telecommunications firms. This sector-focused equity ETF provides diversified exposure to essential infrastructure assets across developed and emerging markets worldwide.
How It Works
TOLZ uses a passively managed, market-capitalization-weighted approach that replicates its benchmark index through physical stock ownership. The fund holds infrastructure companies involved in utilities, pipelines, toll roads, airports, cell towers, and other essential services that generate stable cash flows. Rebalancing occurs quarterly to maintain index alignment. Holdings are geographically diversified across North America, Europe, Asia-Pacific, and emerging markets, with concentration in established infrastructure operators.
Key Features
- Focuses exclusively on global infrastructure companies that own and operate essential assets like utilities, pipelines, and transportation networks
- Provides exposure to inflation-hedging infrastructure assets that typically raise prices alongside rising costs and economic growth
- Offers 3.99% dividend yield from infrastructure companies' typically stable, regulated cash flows and distribution requirements
Risks
- This ETF can lose value when interest rates rise significantly, as infrastructure companies' high debt levels and bond-like characteristics make them sensitive to rate changes
- Regulatory changes in utilities and infrastructure sectors can reduce profitability, particularly affecting companies in heavily regulated markets like electricity and gas distribution
- Global infrastructure stocks can decline 20-30% during economic recessions when growth concerns outweigh their defensive characteristics, despite essential service nature
Who Should Own This
Best suited as a satellite holding (5-15% of portfolio) for income-focused investors with 3+ year time horizons seeking inflation protection and steady dividends. Medium risk tolerance required due to interest rate sensitivity. Appeals to investors wanting infrastructure exposure without direct real estate investment, particularly those building diversified dividend portfolios.