If you’ve been missing the shipping exchange traded fund (ETF) since it closed recently, fret no more: today, the Claymore Delta/Global Shipping ETF (NYSEArca: SEA) once again takes to the seas.
The fund will try to reflect the performance, before fees and expenses, of the same index the original fund did: the Delta Global Shipping Index, or the “Shipping Index.” SEA has an expense ratio of 0.65%. [Claymore Closes Shipping ETF; What’s the Next Step?]
The index includes 30 companies within the maritime industry.
Companies come from developed markets, which include Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United States or the United Kingdom.
No single security weight will exceed 4% of the index at the time of rebalancing. Rebalancing will occur quarterly. [Shipping ETF Sailing an Open Course.]
The shipping sector will be a major indicator of how the economic recovery is proceeding as countries around the world ship raw materials and finished goods back and forth. Dry bulk freight rates have been rising in recent months, along with capesize vessel rates, reports My Iris. China is a major consumer of raw materials these days, and many of the ships are heading in their direction.
For more information on the shipping industry, visit our shipping category.
Max Chen contributed to this article.
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.