Nevertheless, ETF investors should be aware that SEA is not a dry bulk shipping ETF. SEA tracks the Dow Jones Global Shipping Index, which is comprised of dividend-paying global shipping firms, not all of which are focused explicitly on the transport of dry bulk commodities. Nevertheless, SEA’s association with the Baltic Dry Index has helped the ETF strengthen over the past week. [Shipping ETF Looks for Smooth Seas]
The Baltic Dirty Tanker Index (BIDY) is probably more closely associated with SEA. BIDY has increased 4.6% since its October 16 low. This index aggregates rates from major trade routes every day and is a good indicator of overall shipping rates hired to move crude oil. For instance, Nordic American Tankers (NYSE: NAT) makes up 3% of SEA’s underlying portfolio, and oil and gas storage and transportation make up 36.8% of the ETF’s holdings.
Guggenheim Global Shipping ETF
For more information on the shipping industry, visit our shipping category.
Max Chen contributed to this article.