Biden's infrastructure bill is releasing 'a lot of money': here's how to invest

Transportation might be the next big investment theme in the US as the Senate works to enact President Biden’s proposed $579 billion infrastructure bill. The bill seeks to put more cash into telecommunication, utilities, and transportation industries, and according to Global X research and strategy head Jay Jacobs, investors are reacting to this favorably.

Infrastructure investment attracting more investors

In an interview with CNBC’s ETF Edge, Jacobs said:

He added:

Notably, 3% of the car sales in the US for May and June were electric vehicles which is a higher than usual rate. Electric car companies are leading the transportation industry transformation into the future. For instance, automakers such as BMW, Volkswagen, and Mercedes are doubling down on EV manufacture, and according to Jacobs, this spells a considerable shift in driving trends.

Most importantly, at Global X, the situation has turned into around $4B of inflows for the research firm's top ETFs, including Global X Lithium & Battery Tech (NYSE: LIT) and Global X US Infrastructure Development (NYSE: PAVE) Infrastructure Development ETF (PAVE).  So far, the ETFs have collectively accumulated almost $4 billion in assets in 2021, with each having total assets worth around $4 billion. Jacobs explained that looking at how the ETFs are performing means there is a massive investor appetite for the segment in the market.

Pure tech stocks are not right

He told CNBC:

Currently, there is a significant transformation going on in the transportation sector, and as a result, investors are warming up to that prospect.