Hi gurus et al,
I am looking into putting some money into an infrastructure ETF. I already have IOZ which tracks the ASX200 and some direct shares in a bank, biomed and telstra.
The only Australian based infrastructure ETF I've found are: VanEck - IFRA and Vanguard - VBLD. Both are relatively new so don't have any 5+yr returns history. The 1yr returns are IFRA 14.4% and VBLD 16.31%.
There's US-based infrastructure ETF e.g. Blackrock iShares - IGF which has very good returns 1yr- 23% and can be traded in my CMC account, however I'm a bit hesitant to this stage to venture outside of Aus as I don't know the international infrastructure situation.
Has anyone invested in IFRA or VBLD?
The answer will depend largely on what else you've got going on with your portfolio.
I have a small allocation towards global infrastructure in my super fund (the only market based asset I've got at the moment that is worth talking about). I believe infrastructure has good long term prospects both locally and internationally.
As ever, the key is not to bet the farm on one thing (e.g. infrastructure whether local or global). Infrastructure appears to be a strong long term asset allocation, but it needs to be measured against whatever else you're holding.