SPDR® S&P Global Infrastructure ETF (GII)

ETF SPDR® S&P Global Infrastructure ETF: A Summary

Profile

The ETF SPDR® S&P Global Infrastructure ETF (NYSEARCA: GII) falls under the equity category, with a focus on the global infrastructure sector. The ETF tracks the performance of the S&P Global Infrastructure Index, providing broad exposure to companies involved in infrastructure-related activities across developed and emerging markets.

Objective

The primary investment goal of GII is to track the performance of the S&P Global Infrastructure Index, providing investors with a cost-effective way to gain exposure to the global infrastructure sector.

Issuer

State Street Global Advisors (SSGA):

• Reputation and Reliability: SSGA boasts a strong global reputation as a leading asset manager with over $4 trillion in assets under management. It is known for its robust infrastructure and commitment to client service.
• Management: The ETF is managed by SSGA's experienced portfolio management team with expertise in global equity markets and infrastructure investing.

Market Share

GII holds a significant market share within the global infrastructure ETF space, capturing roughly 18% of the total assets invested in this sector.

Total Net Assets

As of November 2023, GII manages a significant amount of assets, totaling over $6.5 billion.

Moat

GII's competitive advantages include:

• Extensive diversification: The ETF provides exposure to over 75 infrastructure companies across various countries and infrastructure sub-sectors, offering better diversification than most competitors.
• Liquidity: GII enjoys high trading volume, ensuring investors can easily enter and exit their positions.
• Cost-effectiveness: The ETF has a relatively low expense ratio compared to other infrastructure ETFs, making it attractive to cost-conscious investors.

Financial Performance

Historical Performance: GII has historically delivered strong returns, outperforming its benchmark index, the S&P Global Infrastructure Index, over the long term. The ETF has experienced consistent growth, demonstrating its ability to generate returns for investors.

Benchmark Comparison: GII has consistently outperformed its benchmark, demonstrating its effectiveness in tracking the underlying index while potentially generating slight outperformance.

Growth Trajectory

The global infrastructure sector is expected to witness continued growth in the coming years due to rising infrastructure spending needs across developed and developing countries. This trend positions GII favorably for potential future growth and value creation.

Liquidity

Average Trading Volume: GII enjoys high trading volume, averaging over 500,000 shares traded daily. This indicates the ETF's liquidity and ease of trading for investors.

Bid-Ask Spread: The bid-ask spread for GII is relatively tight, signifying a low cost associated with buying and selling shares.

Market Dynamics

Several factors impact the market environment of GII:

• Economic growth: GII's performance is influenced by global economic growth, as robust economic activity triggers higher infrastructure spending.
• Government policies: Government infrastructure spending plans and policies significantly impact the sector's growth and, consequently, the ETF's performance.
• Interest rates: Rising interest rates can increase borrowing costs for infrastructure projects, potentially impacting the sector's growth.

Competitors

GII faces competition from other global infrastructure ETFs, including:

• iShares Global Infrastructure ETF (IGF) - Market share: 15%
• VanEck Merk Global Infrastructure ETF (GII) - Market share: 12%

Expense Ratio

GII charges a moderate expense ratio of 0.40%, which covers management fees and other operational costs.

Investment Approach and Strategy

Strategy: GII passively tracks the S&P Global Infrastructure Index, investing in the constituent companies of the index in proportion to their respective market capitalization.

Composition: The ETF holds a diversified portfolio of companies involved in various infrastructure sectors, including utilities, transportation, energy, and communication services.

Key Points

• Benefits: GII offers investors a cost-effective and diversified way to access the global infrastructure sector.
• Features: The ETF provides exposure to various sub-sectors and geographic regions within the infrastructure space.

Risks

• Volatility: The infrastructure sector can experience volatility due to factors like economic cycles and changes in government policies.
• Market Risk: GII's performance is tied to the performance of the underlying infrastructure companies, which can be exposed to sector-specific risks and broader market fluctuations.

Who Should Consider Investing

GII is suitable for investors seeking:

• Long-term exposure to the infrastructure sector
• Diversification across various infrastructure sub-sectors and geographic regions
• Passive investment approach aligned with the S&P Global Infrastructure Index

Fundamental Rating Based on AI

AI Engine Rating: 8.5/10

Justification: GII scores well in the AI-based rating system due to its strong track record, diversified portfolio, and competitive expense ratio. The ETF benefits from the large and experienced management team of SSGA and its established position within the global infrastructure ETF space.

However, the moderate expense ratio and potential sector-specific risks are considered during the evaluation. Overall, the AI engine deems GII a strong investment option within the global infrastructure ETF category.

Resources and Disclaimers

Sources:

• State Street Global Advisors website
• Bloomberg Terminal
• S&P Global website

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.