The biggest return in the U.S. market this year came from the cost of moving oil across the ocean.
The Breakwave Tanker Shipping ETF (BWET) has climbed about 3,600% since the start of the year. That makes it the top-performing non-leveraged fund in the country, ahead of every AI and energy trade that grabbed headlines.
BWET now trades near $726 a share, up from under $20 in January. The huge increase traces back to one event that reshaped global shipping, and it carries a warning for anyone tempted to buy in now.
BWET tracks the price of moving oil by sea. It does that by holding short-dated freight futures, which are contracts that lock in the future cost of renting an oil tanker.
About 90% of the fund follows shipping agreements with the biggest tankers on the route from the Middle East to China. Those agreements lift BWET whenever hiring rates increase.
#cost #agreements
The Breakwave Tanker Shipping ETF (BWET) has climbed about 3,600% since the start of the year. That makes it the top-performing non-leveraged fund in the country, ahead of every AI and energy trade that grabbed headlines.
BWET now trades near $726 a share, up from under $20 in January. The huge increase traces back to one event that reshaped global shipping, and it carries a warning for anyone tempted to buy in now.
BWET tracks the price of moving oil by sea. It does that by holding short-dated freight futures, which are contracts that lock in the future cost of renting an oil tanker.
About 90% of the fund follows shipping agreements with the biggest tankers on the route from the Middle East to China. Those agreements lift BWET whenever hiring rates increase.
#cost #agreements
2 months ago
