PAVE: Facing Trump's Budget Balancing Act
- PAVE is rated as a Hold due to anticipated fiscal tightening under Trump's administration, which could limit federal infrastructure spending and impact the ETF's performance.
- PAVE's portfolio, heavily concentrated in industrials, has outperformed the S&P 500 but faces overvaluation concerns and lacks major future catalysts.
- Trump's economic plans favor private sector investment and reduced regulation, posing a headwind for infrastructure ETFs reliant on government funding.
- Despite PAVE's strong momentum, investors should be cautious of timing risk and consider taking profits as the ETF trades near all-time highs.
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The Global X U.S. Infrastructure Development ETF (BATS:PAVE) looks to be in an uncertain position as President-elect Donald Trump has signaled to implement a conservative fiscal policy. Trump's focus on budget cuts and impoundment powers means that
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- KSR·11-29👍LikeReport