For all of the daily talk about “Greece,” it makes sense for us to revisit a fund that has notable exposure to the country in terms of its equity weightings, SEA (Guggenheim Shipping, Expense Ratio 0.66%).
According to fund literature, Greece is the fourth largest single country weighting in the fund with a 7.96% allocation. Greece falls behind Japan (12.39%), Denmark (21.57%), and the United States (31.77%) in terms of the three larger single country allocations in this fund.
From a single equity standpoint, we see the largest holdings in SEA as follows: 1) AP Moeller-Maersk A/S-B (18.46%), Nippon Yusen KK (7.96%),l Kawasaki Kisen Kaisha Ltd (4.59%), Cosco Pacific Ltd (4.58%), and Matson Inc. (4.43%).
Clearly there is evidence of some overweight to a single equity name here, that being the greater than 18% weighting to AP Moeller-Maersk A/S-B, and we see a total of twenty five individual securities in this portfolio at the moment.
SEA had a tough time last week, plunging as low as $17.15 on an intraday basis just four trading sessions ago, but it has impressively rallied back near an $18 handle, presumably on global equity stabilization post the Greece “deal.”
The fund does not trade a ton of volume on a daily basis, averaging approximately 32,000 shares exchanged daily, and it has modest assets under management at $62.9 million. SEA is however the only “Shipping” specific ETF in the U.S. listed landscape at the moment however, so investors looking to play this specific segment have literally no options to go elsewhere.
Guggenheim Shipping ETF
For more information on Street One ETF market commentary and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com
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