Construction Materials Index

Overview

The PPA Construction Materials Index tracks the price movements in shares of companies supplying raw and intermediate building materials used in all types of construction. These include, but are not limited to, timber, stone, concrete, plastics, glass, steel, chemicals and composites.

Investment Case

In a modern world, as the population continues to grow exponentially and the new technology both enables bigger and better things as well as demands new infrastructure, the new construction literally never stops. The three major sources of construction include the following.

1. Infrastructure and civil engineering projects enable and improve transportation, communications, energy production and distribution, and public services. Their growth is not limited only to emerging economies, but is also evident in the developed world’s efforts to update and renew it, with particular emphasis on it in the US.
2. Industrial and commercial construction follows the new infrastructure development to capture the new benefits offered by it.
3. Residential construction follows as well and also benefits from demographics shifts in both emerging markets seeing a stronger middle class, as well as the US millennial generation powering the additional demand.

The companies producing materials used in construction are positioned to sell the proverbial shovels in the Gold Rush, providing an enormous market opportunity in this secular growth megatrend.

Index Construction & Methodology

Constituents – Top Components

Disclosure: The information provided on this page is for illustrative purposes only and is not intended to serve as investment advice. The information provided is as of particular time (06/15/2018) and subject to change at any time without notice. For more information, please contact PPA Indexes.