This Investment Strategy Could Set Sail on Record Shipping Profits
With sky-high freight rates and shipping companies marking record profits in 2021, now could be a prime time to consider investing in the shipping industry. Although some hurdles remain, cargo shipping and air freight companies have shown immense pricing power and stand to benefit from surging consumption and a rebound in global trade.
In this upcoming webinar, join U.S. Global Investors and ETF Trends for a discussion on how investors can potentially enhance their portfolios through exposure to the highly profitable shipping industry.
Topics will include:
- Why freight rates are so high—and have the opportunity to remain high in 2022
- Supply chain dynamics, COVID-influenced demand, and other trends supporting shipping demand in the months ahead
- How one new ETF strategy, focused on the shipping and air freight industry, can fit into a diversified investment portfolio
Accepted for one hour of CFP/CIMA CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Frank HolmesCEO, U.S. Global Investors
Executive Chairman, HIVE Blockchain Technologies
Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment advisor to SEA. For more information on the U.S. Global Sea-to-Sky Cargo ETF, download a prospectus here.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index.
The outbreak of the COVID-19 pandemic and the resulting actions to control or slow the spread has had a significant detrimental effect on the global and domestic economies, financial markets and industries, including shipping and air freight. U.S. Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on the marine shipping and air freight industries. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to the U.S. Global Sea to Sky Cargo ETF.
Cargo companies may be adversely affected by a downturn in economic conditions that can result in a decreased demand for sea shipping and freight.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, such as China and/or Taiwan, a regional ETFs returns and share price may be more volatile than those of a less concentrated portfolio.
Fund holdings and allocations are subject to change at any time. Click to view fund holdings for SEA.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Diversification does not assure a profit nor protect against loss in a declining market. ETF Trends publisher Tom Lydon is on the board of U.S. Global Investors.