Investing in building and construction in the US

2016 will be remembered for various events having shaped capital markets, one of which was the US election.

On November 9 2016, the world woke up to a new reality: Donald Trump elected as the 45th President of the United States.

The Republican victory ended up being the opposite of what investors had originally feared.

One of the many reasons for this strong movement in markets is Trump’s position on fiscal stimulus. A plan put out by President-elect Trump’s senior economic advisors outlines up to $1 trillion in infrastructure spending over 10 years.

Below are ways in which an investor can get exposure to the sector:

PowerShares Dynamic Building & Construction (PKB US EQUITY)

PowerShares Dynamic Building & Construction is an exchange-traded fund incorporated in the USA.  The Fund seeks investment results that correspond to the Dynamic Building & Construction Index, which evaluates companies based on a variety of investment merit criteria, including fundamental growth, stock valuation and multiple risk factors.

The five largest exposures in the PowerShares Dynamic Building & Construction ETF are as follows:

Home Depot (HD US EQUITY) – 5.13% weighting in the ETF

The Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. The company sells a wide assortment of building materials, home improvement and lawn and garden products, and provide a number of services. Home Depot operates throughout the U.S. (including Puerto Rico, the Virgin Islands and Guam), Canada, China, and Mexico.

Ingersoll-Rand Plc (IR US EQUITY) – 5.063% weighting in the ETF

Ingersoll-Rand Public Limited Company manufactures industrial equipment. The company offers central heaters, air conditioners, electric vehicles, air cleaners, and fluid handling products. Ingersoll-Rand markets its products worldwide.

AO Smith Corp (AOS US EQUITY) – 4.959% weighting in the ETF

A.O. Smith Corporation manufactures residential and commercial water heating and water treatment equipment. The company distributes its products worldwide.

Carlisle Cos Inc (CSL US EQUITY) – 4.933% weighting in the ETF

Carlisle Companies Incorporated manufactures and distributes construction materials, transportation products, and general industry products. The company manufactures a variety of products for the roofing, real estate, construction, trucking, food service, aircraft manufacturing, lawn and garden, and other industries.

Martin Marietta Materials Inc (MLM US EQUITY) – 4.892% weighting in the ETF

Martin Marietta Materials, Inc. produces aggregates for the construction industry, including highways, infrastructure, commercial, and residential. The company also manufactures and markets magnesia-based products, including heat-resistant refractory products for the steel industry, chemical products for industrial and environmental uses, and dolomitic lime.


This article was issued by Kristian Camenzuli, Investment Manager at Calamatta Cuschieri. For more information visit, The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.


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