Could Trump’s grandiose $1 trillion infrastructure spending plan spark an economic recovery?

With employment at historic lows and most of America’s Main Street shut down, Trump’s $1 trillion infrastructure plan could deliver a dual advantage. It would give Americans work, and shore up the country’s infrastructure. A Bloomberg article suggests spending through the states, focused on roads and environmental assets. The ETFs discussed below could be beneficiaries of this spending blitz. (Bloomberg)

Infra ETFs have many advantages

These ETFs pay regular dividends because invested companies have long-term, stable revenues. Their earnings are therefore fairly predictable.

Though Trump’s plan envisages “gleaming new roads, bridges, highways, railways, and waterways across our land,” Bloomberg’s article by Noah Smith is more focused:

“As for what the money should be spent on, the obvious thing is road repair. Because the U.S. has some of the world’s highest construction costs, the country’s roads are difficult to maintain; civil engineers typically give U.S. infrastructure a low grade. Also, existing roads support established networks of economic activity, so there’s not much risk that road repair will lead to so-called bridges to nowhere.”

However, Smith also suggests that the spending should be routed through the states because they know where the funding is needed the most. If that happens, the scope could extend much beyond just roads and into a host of other assets.

Here are four infrastructure ETFs that could ride this boom of spending.

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