A Fund for Betting on Infrastructure

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Obstacles remain, but a $1 trillion infrastructure bill moved closer to becoming a law when the Senate approved it in early August after weeks of wrangling. The Bipartisan Infrastructure Investment and Jobs Act would grant $550 billion in federal funds for the country's roads, bridges, rail, transit, water and other structures.

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Clean energy and new technologies are also a key focus. More than $70 billion would fund upgrades for the country's power infrastructure and boost renewable-energy use. The bill also sets $65 billion aside to build a broadband network so more Americans have access to reliable high-speed internet service; another $7.5 billion would set up a national system of electric-vehicle chargers.

Infrastructure fund SPDR S&P Kensho Intelligent Structures (SIMS) invests about half of its assets in shares of industrials firms. But it also focuses on th! e kinds of technology that the infrastructure bill is big on.

ChargePoint(CHPT), a top-20 holding in the fund, builds and operates electric-vehicle charging stations. Qorvo(QRVO), another top holding, makes radio-frequency systems that drive wireless and broadband communications. And Bloom Energy (BE) converts natural gas into electricity in a combustion-free process that is more environmentally friendly than conventional gas-fired power generation.

The infrastructure bill could stall, of course. But the recovering economy alone is a boon for funds with hefty industrials exposure. Just note that this fund's three-year record is high not only on return but also on volatility.

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As of August 6, 2021. SOURCES: Morningstar, Principal, Yahoo Finance.

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