Global X launches European infrastructure ETF

Global X has expanded its product range with the launch of a European infrastructure development ETF.

The Global X European Infrastructure Development UCITS ETF (BRIJ) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.47%.

The ETF tracks the Mirae Asse European Infrastructure index providing exposure across traditional infrastructure, infrastructure networks, clean energy and digital infrastructure and is the first to provide exposure to just Europe.

Global X said it hopes to capture the “backbone” of a modern economy, with governments looking to prioritise projects around national security, supply chain independence and energy efficiency.

It added there is a huge opportunity in the space, with the European infrastructure gap expected to hit $2trn by 2040, according to the Global Infrastructure Outlook.

Morgane Delledonne (pictured), head of investment strategy a Global X ETFs Europe, commented: “With substantial funding being directed towards infrastructure projects by both the EU and national governments, BRIJ differentiates itself from traditional infrastructure investing by using a pure-play approach that is focused on Europe.

“Through this, it aims to invest in companies that stand to benefit from a potential increase in pan-European initiatives aimed at modernising infrastructure across the region.”

The issuer already houses a US infrastructure ETF – the Global X U.S. Infrastructure Development UCITS ETF (PAVE) – which launched in 2021 and houses $280m.

The largest infrastructure ETF in Europe is the iShares Global Infrastructure UCITS ETF (INFR) with $1.6bn assets under management (AUM), with a TER of 0.65%.

The $1.3bn SPDR Morningstar Multi-Asset Global Infrastructure UCITS ETF (GIN) has a TER of 0.40% but has returned 9.6% versus INFR’s 15.2% over the past 12 months.