ETF Spotlight: Claymore/Delta Global Shipping (SEA)

May 20th at 1:30pm by Tom Lydon

ETF Spotlight on Claymore/Delta Global Shipping (SEA), part of a recurring series.

Assets: $29 million

Objective: Seeks to track the Delta Global Shipping index, which measures the performance of companies listed on global developed market exchanges within the maritime shipping industry.

What’s Good:

  • When a global economic recovery takes place, this fund could be a way to play it
  • It’s globally diversified – the top country weightings are the United States (15.3%), Bermuda (13.5%), Japan (12.9%) and Greece (12.6%)
  • The fund can also be a play on small-caps, as 86% of it is weighted in them (large-caps are 2.6% and mid-caps are 11.4%); small-caps tend to benefit from an economic recovery because their size makes them nimble

The Latest News

The shipping sector could show signs of recovery before the broader economy does. Why? As countries resume production of the various products they export, they’re going to need the raw materials to make them. Enter the shippers. Once those goods are manufactured and ready to be delivered, enter the shippers once again.

Drybulk shipping stocks shot up this week after one analyst said that rates in the sector were increasing, reports the Associated Press. The largest drybulk ships, Capesize vessels, have seen their rates jump because of firming Chinese steel prices.

Some shippers expect as much as 15% to 20% growth in the container shipping sector this year, and it’s calculated that the sector could grow an average of 7% to 8% a year until 2015.

  • Claymore/Delta Global Shipping (SEA): up 16.3% year-to-date

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers

SEA