Breakwave Tanker Shipping ETF BWET is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 2,155.21% from its 52-week low price of $9.60 per share.
Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
BWET in Focus
The fund provides long exposure to the crude oil tanker shipping market through a portfolio of near-dated futures contracts on indices that measure the cost of shipping crude oil. The product charges 350 bps in annual fees (See: All Energy ETFs).
Why the Move?
The Middle East conflict and the closure of the Strait of Hormuz have disrupted key shipping routes, driving a sharp surge in freight rates. This has strengthened the investment case for BWET. Broader disruptions across global trade lanes have also supported shipping stocks this year, with elevated shipping rates in recent months positioning the fund as a clear beneficiary.
Additionally, in the long term, rising demand in emerging economies and limited investment in new tanker capacity should continue to support the sector even after the conflict ends.
More Gains Ahead?
BWET might continue its strong performance in the near term, with a positive weighted alpha of 1,184.75 (per Barchart.com), which gives cues of another rally.
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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.
