In this article, we discuss the two recently launched Infrastructure ETF by ETF Securities - ETFX Dow Jones Brookfield Global Infrastructure Fund and ETFX Dow Jones Brookfield Emerging Markets Infrastructure Fund.
Infrastructure development is the need of the hour - it has always been. Irrespective of the state where a country or economy is - develoed, developing, backwards, or whatever - there is always a need to develop infrastructure as the need be. So, the ETF Securities has now launched 2 new Infrastructure specific Exchange Traded Funds or Infrastructure ETF's to capture the investments capital from investors who wish to bet their money on Infrastructure. These funds offer a good option to investors who wish to make investments into Infrastructure sector at Global level and are hopeful to make good returns from this sector. Being ETF or Exchange Traded funds, they can be traded in real time as stocks, and yet give you the diversification benefit like a fund. The ETF's also come in low fees, so that again is a kind of saving for the investors.

ETFX Dow Jones Brookfield Global Infrastructure ETF: Review Analysis & Details

The ETFX Dow Jones Brookfield Global Infrastructure ETF, as the name suggests, is global in nature, i.e. it will invest in global companies in infra sector. However, it is learnt that the major weightage for this ETFX Dow Jones Brookfield Global Infrastructure ETF will be towards the developed countries of Americas and Europe. So I am of the opinion that the name of the fund could have better been ETFX Dow Jones Brookfield "Developed" Infrastructure ETF. Anyways, other details are as follows:
1) There will be investment in around 90 infrastructure companies which will be from 20 different countries, but weightage for this fund will be for developed countries in America and Europe.
2) The expense ratio for this ETFX Dow Jones Brookfield Global Infrastructure ETF will be 0.60%
3) It will track the underlying Dow Jones Brookfield global infrastructure index
4) The above underlying index is reported to have returned around 8% annually over the last 5 years long period

ETFX Dow Jones Brookfield Emerging Markets Infrastructure ETF: Review Analysis & Details

The other ETF focuses on so called emerging markets, mainly the infrastructure companies from the developing countries.
1) The no. of companies in this fund will be aroound 72 which will be from 16 different countries
2) The countries will be mainly the so called - developing countries
3) The expense ratio for this ETF will be 0.65%
4) This ETF will track the underlying Dow Jones Brookfield emerging markets infrastructure index
5) The above underlying index is reported to have returned around 9.6% annually over the last 5 years long period

What is the reason for these new ETF's to be lauched now in the infrastucture space?
Well, any timing is fine for the investment companies to come out with new investment products. It's more on how much can they convince the investors that "this is the right time for investment in this product/sector". Now have a look at the reality. Infrastructure has always been the need of the hour. Be it America, Europe, Asia or any other region. Irrespective of the timing, infra developments are needed. So I personally dont see any specific reason for launch of two new infra specific ETF's now.
However, I am happy to see that these two new ETF's will add to the list of choices available for investments in infrastructure sector. I am also happy to see the low expense ratio - 0.6% and 0.65%.

What are the risks involved in ETF investments in the infrastucture sector?
There are several risks - the sector specific risk being the biggest. Recall the scenario 2 years back in 2008, when the entire world was fighting recession. Many infrastructure projects were cancelled by the countries or put on hold. The infra companies lost heavily.
Also, please note that infra sector has a lot of dependence on the government decisions and policy. A regime change or policy change in one country can lead to severe impact on returns.
Then, there is the forex risk. Its good to say that "my invested ETF gives me international exposure", but dont forge that you are indirectly also getting exposed to the foreign exchange risks
See the following related articles on Infrastructure Funds and Infrastructure ETF:

Introduction to Infrastructure Funds and ETF

Different Types Of Infrastructure Funds and Infrastructure ETF

List of Infrastructure Funds