Betting On Building In The Emerging Markets (PXR)

While the U.S. seems to talk a good game when it comes to infrastructure spending, the emerging markets is where the future of the infrastructure lies. Of course, China lies at the forefront of this trend.

Merrill Lynch estimates emerging markets infrastructure spending will rise by 80% over the next several years. China, the Middle East, and Russia will account for 70% of infrastructure spending, according to Merrill Lynch. Some firms have estimated global infrastructure spending could reach $22 trillion over the next decade.

If those predictions prove accurate, the PowerShares Emerging Markets Infrastructure ETF (NYSE: PXR) could prove to be a very rewarding investment.

PXR's geographic diversification is a postiive as the ETF owns companies based in the U.S., China, Brazil and Europe, among other geographies. Top holdings include Caterpillar (NYSE: CAT), Brazil's Vale (NYSE: VALE) and Russia's Mechel (NYSE: MTL).

PXR is up 80% year-to-date, but 2010 could deliver even more dynamic returns as emerging markets opt for better highways, railways and related fare.