The thesis

PAVE is an infrastructure development ETF with a conviction score of 40. The fund is a direct beneficiary of the current risk-on rotation, with a macro signal of +20. This setup is interesting due to its exposure to infrastructure and reshoring themes. The company's investment strategy aims to mirror the Indxx U.S. Infrastructure Development Index.

Why now

The current risk-on rotation, driven by recent comments from Trump, makes this a compelling moment to consider PAVE. The Dow's rise and the Nasdaq 100's rebound further support this market dynamic.

What to watch

The fund's ability to maintain its tracking error and navigate the current risk-on rotation will be key indicators to watch over the next quarter. The performance of the Indxx U.S. Infrastructure Development Index and the overall health of the infrastructure and reshoring themes will also be important to monitor.

Key risks

Valuation risk is a concern, as the fund's fees and operational expenses may eat into returns. Execution risk is also present, as the fund's ability to track the Indxx U.S. Infrastructure Development Index is crucial. Macro risk, such as a shift away from risk-on assets, could also negatively impact PAVE.

Theme exposure