ClearBridge Sustainable Infrastructure ETF (INFR)

Overview

The ClearBridge Sustainable Infrastructure ETF (SRUI) focuses on investing in companies that own and operate infrastructure assets with a sustainable focus. The target sectors include utilities, energy, and telecommunications, with an emphasis on renewable energy sources, water infrastructure, and digital infrastructure. The investment strategy centers on identifying companies with resilient business models, long-term growth potential, and positive environmental, social, and governance (ESG) characteristics.

Reputation and Reliability

Legg Mason, the parent company of ClearBridge Investments, is a well-established global asset management firm with a long history and a strong reputation for investment expertise and client service. ClearBridge Investments itself is known for its fundamental research and disciplined investment approach.

Management Expertise

The ETF is managed by ClearBridge Investments, which has a team of experienced portfolio managers and research analysts with deep expertise in global equity markets and sustainable investing. Their focus on fundamental analysis and proprietary research contributes to the ETF's management.

Goal

The primary investment goal of the ClearBridge Sustainable Infrastructure ETF is to provide long-term capital appreciation by investing in companies engaged in the development, ownership, and operation of sustainable infrastructure.

Investment Approach and Strategy

Strategy: The ETF aims to provide exposure to sustainable infrastructure companies rather than tracking a specific index. The strategy is actively managed, focusing on identifying companies that benefit from secular growth trends in areas like renewable energy, clean water, and digital connectivity.

Composition The ETF primarily holds equities (stocks) of companies operating in the infrastructure sector, with a particular emphasis on those with sustainable business practices and assets. This includes companies in renewable energy generation, transmission, and storage, as well as water utilities and companies involved in digital infrastructure development.

Market Share: Market share data for specific niche ETFs like SRUI is not readily available in a standardized public format. However, it operates within the broader sustainable infrastructure ETF segment.

Total Net Assets (AUM): 657000000

Key Competitors

• iShares Global Clean Energy ETF (ICLN)
• Invesco WilderHill Clean Energy ETF (PBW)
• First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)

Competitive Landscape

The sustainable infrastructure ETF market is becoming increasingly competitive, driven by growing investor interest in ESG and the energy transition. Competitors often focus on specific sub-sectors like clean energy or broader infrastructure themes. ClearBridge's advantage lies in its active management approach and ClearBridge Investments' established research capabilities, potentially allowing for more nuanced stock selection. However, passive ETFs with lower expense ratios can be a disadvantage.

Historical Performance: Historical performance data for SRUI shows varied returns across different timeframes, influenced by sector-specific trends and broader market conditions. Specific year-over-year and multi-year performance figures would require up-to-date data feeds.

Benchmark Comparison: While not tracking a specific index, SRUI's performance is often compared against broader infrastructure or clean energy benchmarks to assess its effectiveness. Its active management aims to outperform these benchmarks through selective stock picking.

Expense Ratio: 0.45

Average Trading Volume

The average daily trading volume for the ClearBridge Sustainable Infrastructure ETF is typically moderate, indicating sufficient liquidity for most retail and institutional investors.

Bid-Ask Spread

The bid-ask spread for SRUI is generally tight, reflecting good liquidity and efficient trading on major exchanges, minimizing trading costs for investors.

Market Environment Factors

The ETF is influenced by factors such as government policies supporting renewable energy and infrastructure development, interest rate changes affecting financing costs for infrastructure projects, and the pace of technological advancements in sustainable solutions. Growth prospects for the renewable energy, digital infrastructure, and water treatment sectors are key drivers.

Growth Trajectory

The growth trajectory of the ClearBridge Sustainable Infrastructure ETF is tied to the increasing global focus on sustainability and the need for modernizing infrastructure. Changes in holdings would reflect the portfolio managers' assessment of evolving opportunities and risks within the sustainable infrastructure landscape.

Competitive Edge

ClearBridge Sustainable Infrastructure ETF benefits from the extensive research capabilities and fundamental analysis expertise of ClearBridge Investments. Its active management strategy allows for dynamic portfolio adjustments, targeting companies with sustainable growth profiles and strong ESG credentials. This differentiated approach aims to capture opportunities beyond broad index tracking, focusing on resilient infrastructure assets critical for a sustainable future.

Volatility

The ETF exhibits moderate historical volatility, characteristic of equity investments in growth-oriented sectors like sustainable infrastructure, which can be influenced by technological shifts and regulatory changes.

Market Risk

Key market risks include interest rate fluctuations affecting infrastructure project financing, regulatory changes impacting renewable energy subsidies and environmental policies, technological obsolescence, and general equity market downturns. Concentration in specific infrastructure sub-sectors can also amplify sector-specific risks.

Ideal Investor Profile

The ideal investor for the ClearBridge Sustainable Infrastructure ETF is one seeking long-term capital growth who believes in the future of sustainable infrastructure, including renewable energy, clean water, and digital connectivity. Investors should have a moderate to high risk tolerance and an interest in ESG principles.

Market Risk

This ETF is best suited for long-term investors who are looking for diversified exposure to the sustainable infrastructure theme and are comfortable with an actively managed approach. It is less ideal for short-term traders due to its focus on fundamental, long-term value.

The ClearBridge Sustainable Infrastructure ETF (SRUI) offers investors access to companies at the forefront of sustainable infrastructure development. Managed by ClearBridge Investments, it focuses on long-term capital appreciation through active selection of resilient companies in sectors like renewable energy and digital infrastructure. While facing competition, its active strategy and ESG focus aim to provide a distinct advantage. It's best suited for long-term investors with a moderate to high risk tolerance seeking exposure to critical global growth trends.

Data Sources:

• ETF Provider Websites (e.g., ClearBridge Investments, Legg Mason)
• Financial Data Aggregators (e.g., Bloomberg, Morningstar)
• Securities and Exchange Commission (SEC) Filings

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data on market share and specific financial metrics may vary based on the source and reporting period.