Indxx Licenses Infrastructure Index to Global X ETFs Australia

• Indxx has licensed its U.S. Infrastructure Development Index to Global X ETFs Australia for an ETF.
• The index measures the performance of U.S. companies involved in infrastructure development.
• It’s a strategic addition due to recent legislative acts directing substantial funding towards U.S. infrastructure.

Indexing solutions provider, Indxx, has licensed its U.S. Infrastructure Development Index to Global X ETFs Australia. The index now serves as the benchmark for the Global X US Infrastructure Development ETF (Ticker: PAVE) trading on the Australian Securities Exchange (ASX).

The Indxx U.S. Infrastructure Development Index measures performance of companies involved in U.S. infrastructure development, including construction, engineering, raw materials production, heavy construction equipment distribution, and infrastructure materials transportation.

U.S. Infrastructure Enters a New Era

In 2021, the American Society of Civil Engineers (ASCE) rated America’s infrastructure a grade of C-, marking its first departure from the D range in 20 years.1

The U.S. Congress passed bills such as the Infrastructure Investment and Jobs Act and the CHIPS and Science Act, planning to invest over $1.2 trillion in infrastructure modernization from 2021 through 2030.2

Indxx’s President and Co-CEO, Rahul Sen Sharma, stated that infrastructure is critical for economic growth, job creation, trade facilitation, and business operation. Governmental and private investments in infrastructure, totaling over $120 billion and $866 billion respectively, indicate a promising industry outlook.3 The success of the U.S. listed Global X U.S. Infrastructure Development ETF (NYSE: PAVE) highlights investor confidence in infrastructure investments.

Vaibhav Agarwal, Chief Product Officer at Indxx, emphasized the index’s research-focused methodology, offering access to leading U.S. infrastructure companies. Eligible companies must generate more than 50% of their revenue within the U.S., ensuring accurate representation of the U.S. infrastructure industry.

Evan Metcalf, CEO at Global X ETFs in Australia, noted PAVE’s strategic addition to the company’s product suite, filling a market gap. Recent U.S. legislative acts allocating substantial funding towards infrastructure signal vast growth potential for companies in this sector.

As of June 5, 2024, the index includes 99 constituents. The index has been back tested to January 31, 2011, with a live calculation date of February 17, 2017. For more information, see here.