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Investing in Infrastructure

April 16, 2021

President Joe Biden has announced a massive $2 trillion infrastructure bill known as the American Jobs Plan.  This investment in US infrastructure entails the rebuilding 20,000 miles of roads and 10,000 bridges, the elimination of lead pipes, and a long list of plans to shift investment towards newer clean energy sources.

Which industries stand to benefit from the Biden administration’s agenda?  In addition to healthcare and infrastructure, Green Energy is likely to be a winner.  For example, solar power is coming to the forefront as the focus on renewable energy takes shape.  Nasdaq has a green energy index (First Trust NASDAQ Clean Edge Green Energy Index Fund – symbol QCLN) which is up 3x in the past year. We are not recommending this fund, but it represents an example of how to invest in green energy.  A big driver of returns has been Tesla, but the fund also includes companies invested in solar power, energy efficient lighting, and the technology necessary to build smart power grids and energy efficient products.  The fund’s top ten holdings are shown in the chart below.  For those interested in green energy, this fund is likely worth a look.

Even if Congress passes a different infrastructure bill than the American Jobs Plan, the need for upgraded infrastructure and the advancements in renewable technology should support additional investment in these areas over the long-term.