- (0:45) - What Is The Importance of The Strait of Hormuz and What Is The Impact of The Closure?
- (4:40) - Key Global Transportation Routes and Their Current Situations
- (8:15) - What Impact Has The War Had On Global Shipping Costs and How Does It Compare To The
- Pandemic
- (14:05) - Breaking Down Cargo Vessel Classes And How They Have Been Affected By The War
- (16:30) - Breakwave Tanker Shipping and Dry Bulk Shipping ETFs: BWET & BDRY
- (22:35) - Episode Roundup: Podcast@zacks.com
In this episode of ETF Spotlight, I speak with John Kartsonas, Managing Partner at Breakwave Advisors, about the state of the shipping industry, which has been disrupted by the Iran war, and the Breakwave Tanker Shipping ETF BWET, which has become the top-performing ETF of the year, up more than 350%.
The Middle East war has triggered a severe disruption in global energy markets, as Iran has choked off the Strait of Hormuz, a critical passage through which roughly 20% of the world’s oil exports flow.
It’s not just current war-related disruptions in the Strait of Hormuz. Other shipping routes have also been disrupted in recent years. For example, the Red Sea has faced attacks from Yemen’s Houthi rebels.
These global supply chains form the backbone of world trade. About 90% of the world’s goods are transported by sea, according to the FT. Due to all the disruptions, shipping rates have skyrocketed.
BWET provides exposure to crude oil tanker freight rates and aims to profit from increases in these futures beyond what is already priced in the market. It has been rising since late 2025 due to Middle East tensions.
Its sister fund, the Breakwave Dry Bulk Shipping ETF BDRY, tracks dry bulk shipping. It skyrocketed in 2021 due to disruptions caused by the pandemic.
We also discuss the potential role of these funds in a diversified multi-asset portfolio. Is it a crisis hedge, a tactical trade, or an inflation proxy?
Tune in to the podcast to learn more.
Be sure to look out for the next edition of ETF Spotlight, and remember to subscribe!
If you have any comments or questions, please email podcast@zacks.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
