Smooth Sailing or a Bumpy Ride Ahead for Shipping ETFs?
(1:00) - Breaking Down The Shipping Industry: Whats Going On Right Now?
(9:30) - Russian Oil Sanctions: What Impact Does This Have On The Shipping Industry?
(15:15) - The Decarbonization of Shipping: The Fuel of The Future
(18:45) - What Can Investor Expect For The Future of Shipping?
(22:50) - Breakwave Sea Decarbonization Tech and Tanker Shipping ETF: BSEA & BWET
(25:45) - Breakwave Dry Bulk Shipping ETF: BDRY
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with John Kartsonas, Managing Partner at Breakwave Advisors, about the shipping industry, which is facing a slowdown after two years of bumper profits.
Container shipping rates soared in the second half of 2020 due to supply chain disruptions worldwide caused by the pandemic. However, the industry is now facing headwinds as the demand for goods has plunged due to rising inflation and a shift in spending from goods to services.
The Breakwave Dry Bulk Shipping ETF BDRY provides a pure-play exposure to dry bulk shipping using futures. It was the best performing ETF of 2021 but is currently down about 18% year-to-date. Freight rates could rebound in the coming months if China's economic recovery picks up gradually.
The war in Ukraine had boosted tanker shipping rates amid disruptions in the traditional shipping routes due to sanctions on Russian oil. However, recent supply cuts announced by OPEC+ sent these rates lower.
The Breakwave Tanker Shipping ETF BWET is designed to profit from increases in oil freight futures beyond what is already priced into the market.
There is a growing focus on sustainability in shipping, as the United Nations has mandated the industry to reduce carbon intensity by 40% by 2030 and 70% by 2050.
The ETFMG Breakwave Sea Decarbonization Tech ETF BSEA invests in global companies involved in actively reducing the environmental impact of the global maritime sector.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports
ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA): ETF Research Reports
Breakwave Tanker Shipping ETF (BWET): ETF Research Reports
