The TSX today remains a place of volatility, thanks to falling TSX stocks combined with rising interest rates and inflation. As of writing, the TSX remains down 7.32% year to date. That’s an improvement but still within market correction territory, as it’s down about 12% from 52-week highs.
Still, there’s a way to gain some stability during this turbulent time. It simply means finding the right TSX stock. Luckily, I have just the thing.
Image source: Getty Images
BMO Global Infrastructure ETF
BMO Global Infrastructure Index ETF (TSX: ZGI) is a strong option for Motley Fool investors looking to get out of the volatile market. Infrastructure provides you with stable cash flows from predictable industries. These include things like water, gas, hydro, and other necessities that we simply cannot live without.
In the case of BMO, it’s created an exchange-traded fund (ETF) that focuses on the stable industry. The ETF has 48 holdings all in TSX stocks, with current total net assets valued at $561,166,131. The ETF itself has performed quite well, seeing shares rise (yes, rise) 6.5% year to date and up 10.15% in the last month and a half alone.
So, this is all great news right now, but why should Motley Fool investors hold onto this stock long term?
A solid long-term option
For that, investors should look to the historical performance of the TSX stock, but also the Dow Jones Brookfield Global Infrastructure North American Listed Index. ZGI goes back to 2009, when ETFs were first introduced in Canada. Since the Dow Jones went live in 2012, ZGI has sought to replicate its performance.
The companies these two indexes invest in tend to be quite large, if not full-on blue-chip companies that have taken on an entire industry. These companies have the money necessary to build new facilities and create more growth. This comes with predictable cash flow, but also predictable dividends.
That’s what makes the TSX stock a strong long-term option. You can look back at history and pretty much guarantee growth for the future. And what’s better still is that ZGI is an ETF to begin with. There isn’t any reason it has to stay hooked to a dying industry, such as oil and gas. It can shift its investments with the times, continuing to create stable share growth for Motley Fool investors.
Invest now
So, with long-term growth, what’s the benefit of investing now? Canadians may have noticed that this TSX stock and others have been in rebound mode over the last month or so. This rebound makes it a great time to buy the stock while still down, but with a higher likelihood of a positive climb.
Further, there are more infrastructure opportunities the company can explore. This might include telecommunications, airport infrastructure, and more. All areas that have become necessary in the last few decades. Finally, all this is offered around the world, making it a great way to invest and diversify your portfolio.
Shares of ZGI trade at just $45 as of writing and pay a dividend of 3.34%.
