The SPDR Morningstar Multi Asset Global Infrastructure UCITS ETF will offer exposure to both infrastructure bonds and equities.
The fund will list on the London Stock Exchange on 16 April, having floated on the Deutsche Börse Xetra today, and carries a total expense ratio of 0.4%.
Discussing the factors behind the decision to launch the ETF, SSGA highlighted in-house research showing that 35% of intermediaries and 33% of institutional investors intend to increase their weighting in the infrastructure universe in Q2 2015.
Alexis Marinof, head of SPDR ETFs EMEA, also outlined the low correlation to traditional assets alongside reduced sensitivity to business cycles as attractive characteristics of infrastructure investments.
“Many investors don’t have the scale to invest in unlisted infrastructure or directly into debt securities, making it difficult for smaller investors to get exposure,” he said.
“Our fund aims to combat this, by offering a regulated, open-ended vehicle through which to access the asset class. The ETF also helps larger investors who have an allocation to direct infrastructure, by offering a temporary home for committed, but uncalled capital.”
The launch comes amid growing demand for exchange-traded products in the European a space – the first European ETF was launched 15 years ago, 2,269 products now occupy a market worth £333.9bn, which BlackRock predicted last week will double by 2019.
