SEA has also been aided by a 10.1% weight to Greek equities, one of the largest weights to Greece among ETFs outside of the Global X FTSE Greece 20 ETF (NYSEArca: GREK). Iron demand could also be a fundamental catalyst that boosts SEA in the near-term.
“Although lower future prices may be negative, they will be positive for shipping companies that haul iron ore across the ocean if the catalyst behind the lower expected iron ore prices isn’t lower demand, but an increase in supply,” according to Market Realist.
Guggenheim Shipping ETF
ETF Trends editorial team contributed to this post.