First Freight Futures ETF Focuses on Dry Bulk Shipping

Investors can now gain direct exposure to changes in global trade through the first freight futures-backed ETF that focuses exclusively on dry bulk shipping.

On Thursday, Breakwave Advisors and ETF Managers Group launched the Breakwave Dry Bulk Shipping ETF (NYSEArca: BDRY), which has a 1.72% expense ratio.

The Breakwave Dry Bulk Shipping ETF is an actively managed ETF that seeks to provide exposure to daily changes in the price of dry bulk freight futures by tracking three-month strip of the nearest calendar quarter of futures contracts on the Capsize 5TC Index, the Panamax 4TC Index and the Supramax 7TC Index that measure rates for shipping dry bulk freight, according to a prospectus sheet.

The initial freight futures allocation will be 50% Capesize contracts, 40% Panamax contracts and 10% Supramax contracts.