Inflation and geopolitical uncertainty are pushing advisors and investors to rethink how they build diversified portfolios.
However, it’s important to note that diversification comes in many different forms. To elaborate, having a broad equity allocation does not mean that one’s portfolio is necessarily well-diversified — it’s important to have a well-balanced array of income options as well.
That being said, how should investors go about diversifying their income sleeve? Building diversified fixed income exposure by allocating to things like high yield bonds is one option. However, a truly diversified income portfolio might want to look beyond the traditional space of bonds for generating portfolio income.
See More: Global Infrastructure ETFs: Defense, Diversity, and Income
Investors may not generally think of infrastructure stocks as a great way to amplify portfolio income, but infrastructure companies have historically proven themselves to be quite proficient at doing so. Better yet, not only do infrastructure companies tend to provide steady, diversified cash flows; they also often serve as valuable hedges against inflation. This is because of the relatively inelastic demand of infrastructure stocks — even if prices rise, infrastructure companies can usually pass costs onto their consumer base with relative ease.
BKGI: A Diversified Route to Global Infrastructure Income
If the opportunities within global infrastructure sound particularly compelling, then the BNY Mellon Global Infrastructure Income ETF (BKGI) could be worth a closer look. BKGI seeks to generate income and capital appreciation through a distinctive approach to global infrastructure exposure.
BKGI offers diversified income potential through multiple avenues. To start, the fund offers a global perspective, with the potential to invest in a variety of different infrastructure companies from around the world. Investing in BKGI adds the extra bonus of global diversification, which remains a crucial boon.
See More: Global Infrastructure ETFs: Built for the Road Ahead
Furthermore, BKGI branches out from other infrastructure funds on the market due to its innovative approach to infrastructure exposure. Usually, most traditional infrastructure funds stick to the same tried-and-true assets, like utilities, industrials, and energy.
The BNY Investments team looks to add both traditional and non-traditional infrastructure stocks to its portfolio. For BNY, non-traditional infrastructure companies could come from sectors such as real estate, healthcare, and communications services. By investing in both traditional and non-traditional assets, BKGI offers a broader range of paths to total return.
The numbers back it up, with BKGI’s approach delivering strong results so far tihs year. As of April 30, 2026, the fund has a 30 day SEC yield of 4.98%. Meanwhile, BKGI’s NAV has also risen 13.14% year to date, as of April 30, 2026.
Originally published on ETF Trends
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