8 December 2022: Wealth Product Ideas
| Fund Name (Ticker) | Utilities Select Sector SPDR® Fund (XLU) |
| Description | The Utilities Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Utilities Select Sector Index. |
| Asset Class | Equity |
| 30-Day Average Volume (as of 06 Dec) | 12,399,045 |
| Net Assets of Fund (as of 06 Dec) | $16,459.32 M |
| P/E Ratio (as of 05 Dec) | 22.90 |
| P/B Ratio (as of 05 Dec) | 2.20 |
| Management Fees | 0.10% |
Top 10 Holdings
(as of December 05, 2022)
- BUY Entry – 70.0 Target – 77.0 Stop Loss – 66.5
- Growing worries that Federal Reserve’s interest rate increases will bring on an economic downturn next year
- With signs of a possible recession, people are investing in defensive sectors, such as utilities
- Signs of possible recession: monetary tightening by the Fed, steep slowdown in the housing market and yield curve inversion
- Investors will receive dividends semi-annually
Source: Bloomberg
| Fund Name (Ticker) | iShares Global Infrastructure ETF (IGF) |
| Description | The iShares Global Infrastructure ETF seeks to track the investment results of an index composed of developed market equities in the infrastructure industry. |
| Asset Class | Equity |
| 30-Day Average Volume (as of 05 Dec) | 527,614.00 |
| Net Assets of Fund (as of 06 Dec) | $3,844,089,518 |
| 12-Month Trailing Yield (as of 31 Oct) | 2.68% |
| P/E Ratio (as of 05 Dec) | 21.80 |
| P/B Ratio (as of 05 Dec) | 1.99 |
| Management Fees | 0.40% |
Top 10 Holdings
(as of December 05, 2022)
- BUY Entry – 46.0 Target – 50.0 Stop Loss – 43.5
- Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act)
- In November 2021, Congress approved the largest federal investment in decades.
- Combined with the President’s Build Back Framework, it will add on average 1.5 million jobs per year for the next 10 years.
- modernise the U.S. infrastructure landscape
- Key areas invested in:
- $55 billion to expand access to clean drinking water for households, businesses, schools, and child care centers all across the country
- $65 billion to help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment
- $110 billion in additional funding to repair our roads and bridges and support major, transformational projects
- $89.9 billion in guaranteed funding for public transit over the next five years
- $17 billion in port infrastructure and waterways and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and drive electrification and other low-carbon technologies
- $66 billion in additional rail funding to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic
- $7.5 billion to build out a national network of EV chargers in the United States
- more than $65 billion investment includes the largest investment in clean energy transmission and grid in American history
- over $50 billion to protect against droughts, heat, floods and wildfires, in addition to a major investment in weatherization
- $21 billion clean up Superfund and brownfield sites, reclaim abandoned mine land and cap orphaned oil and gas wells
